Sebi mulls Rs 2,000 incentive for MF investments from smaller cities, women

The Securities and Exchange Board of India (Sebi) has proposed a new incentive framework for mutual fund distributors to boost participation of investors from beyond the top 30 cities as well as women.

Asset management companies can pay up to ₹2,000 in additional commission to distributors for bringing new individual investors from places other than the top 30 cities and female investors, Sebi said.

However, the investor should remain invested for a minimum period of one year for the distributor to get the additional commission, the regulator said in a circular on Thursday. The additional distribution commission should be paid from the investor education fund, it said.


Distributors would be able to receive the additional commission for mobilising investments from new female investors in the top-30 cities as well. Dual incentives for the same investor would not be allowed. The new incentive structure would become effective February 1, 2026.