CIRCULAR
HO/(83)2025-IMD-POD-1/I/2027/2026 January 07, 2026
To
All Mutual Funds
All Asset Management Companies (AMCs)
All Trustee Companies of Mutual Funds
Registrar to an Issue and Share Transfer Agents (‘RTAs’)
Association of Mutual Funds in India (AMFI)
Madam/ Sir,
Subject: Extension of timeline for implementation of additional incentives structure
for distributors for onboarding new individual investors from B-30 cities and
women investors
1. SEBI, vide Circular No. HO/(83)2025-IMD-POD-1/I/152/2025 dated November 27,
2025, prescribed a framework (to come into effect from February 01, 2026) for
incentivizing distributors for mobilizing investment/inflows from the following
categories of investors at the mutual fund industry level:
1.1. New individual investors (new PAN) from B-30 cities;
1.2. New women individual investors (new PAN) from both T-30 and B-30
cities.
2. Based on the feedback received from the industry, citing operational difficulties in
putting place the requisite systems and processes for smooth implementation of
the additional incentive structure, it has been decided to extend the implementation
timeline. Accordingly, the provisions of the aforesaid circular shall now come into
effect from March 01, 2026.
3. All other provisions of SEBI Circular dated November 27, 2025 shall remain
unchanged.
4. This circular is issued in exercise of powers conferred under section 11(1) of the
Securities and Exchange Board of India Act, 1992, and the provisions of
Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, in the interest of
investors and to promote the orderly development of the mutual fund industry.
5. This circular is available at www.sebi.gov.in under the link “Legal-> Circulars.”
Yours faithfully,
Peter Mardi
Deputy General Manager
Investment Management Department
+91-22-26449233
peterm@sebi.gov.in