In the board meeting held on September 12, SEBI announced several major decisions to protect the interests of mutual fund investors.
According to SEBI, these steps will help increase public interest in mutual fund schemes. SEBI Chairman Tuhin Kant Pandey shared the details of these decisions.
Exit Load Limit Reduced
Till now, the maximum exit load charged by mutual fund schemes was 5%. SEBI has now reduced this limit to 3%. This means no mutual fund scheme can charge investors more than 3% as exit load.
This move will benefit investors directly and will also make it easier for schemes investing in less liquid securities.
Incentives for Investors from Small Cities
To expand mutual fund participation in smaller towns, SEBI has introduced an incentive system for distributors.
Distributors will now be rewarded for bringing new investors from cities beyond the top 30 (B-30 cities).
Incentive for lump sum investment: 1% of the first application amount.
Incentive for SIP: 1% of the total investment in the first year.
Maximum limit: ₹2,000 per investor.
Special Scheme for Women Investors
SEBI has also introduced separate incentives for distributors who bring new women investors into mutual fund schemes.
The conditions for these incentives will be the same as those for new investors from B-30 cities.
These proposals were first submitted to SEBI’s Mutual Fund Advisory Committee in January 2023, opened for public feedback in May 2023, and finalized in July 2023.
