New incentive rules offer mutual fund distributors 1% commission for onboarding B-30 and women investors nationwide

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....A securities regulator deletes an earlier regulation on distributor incentives for inflows from beyond top 30 cities due to misuse concerns and introduces a revised incentive framework under a different regulation. Mutual fund distributors may now receive additional commission for onboarding new individual investors with new PANs from B-30 cities and new women investors from all cities. The commission is 1% of the first lump sum application (capped at Rs. 2,000, with a one-year holding requirement) or 1% of first-year SIP contributions (capped at Rs. 2,000). It is funded from the existing 2 bps investor education allocation, excludes specified schemes, and takes effect from February 1, 2026.....