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There is good news for MFDs as you will soon hear something from SEBI related to B30 incentives.
Manoj Kumar, Executive Director, SEBI said that the market regulator is contemplating to introduce new structure to incentivize distributors for bringing in new investors from B30 cities and women clients across all locations.
Kumar spoke to Cafemutual on the sidelines of the AMFI conference during the launch of choti SIP held recently in Mumbai.
Kumar said that distributors should not lose hope on B30 incentives as the regulator will bring something for them in the next financial year.
A CEO requesting anonymity said that the industry has already suggested a mechanism to check misuse of B30 incentive structure. Now, it is up to the regulator to reintroduce B30 incentives in a new avatar, the CEO added.
In the past, the regulator had proposed allowing AMCs to pay a flat fee of 1% of the size of the first application amount or the amount of SIP committed subject to a maximum incentive of Rs.2000. Such a structure would be applicable for bringing in new investors from B30 cities or women investors across all locations.
According to SEBI, this one-time fee will come from the IAP corpus of 1bps that stays with AMCs to create awareness among people.
