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SEBI postpones distributor incentive rollout to March to ease implementation

SEBI delays the mutual fund distributor incentive framework to March 1, allowing firms more time to put systems in place. Extra 1% payout still applies.
Markets regulator SEBI has deferred the implementation of its additional incentive structure for mutual fund distributors by one month. The change pushes the start date from February 1 to March 1, 2026, after industry participants cited operational difficulties in setting up systems and processes for the earlier timeline. Under the revised framework, asset management companies will pay an extra 1% commission on the first lump-sum or first-year SIP, capped at ₹2,000.