In order to encourage mutual fund distributors to expand their outreach and create awareness among new investors, SEBI, vide this circular, has prescribed the requirement to pay additional incentives to distributors for onboarding new individual investors from beyond top 30 cities (B-30 cities) and women investors. It is provided thatfor Lump Sum Investment, the additional commission will be 1% of the amount of the first application subject to a maximum of ₹2,000, provided the investor remains invested for a minimum period of one year and for Systematic Investment Plan (SIP) the additional commission will be 1% of the total investment made during the first year, subject to a maximum of ₹2,000.
