SEBI Extends Timeline for Distributor Incentive Framework

Circular No. HO/(83)2025-IMD-POD-1/I/2027/2026, Dated 07.01.2026

1. Introduction

The Securities and Exchange Board of India (SEBI) has extended the timeline for implementation of the additional incentive structure for distributors aimed at onboarding new investors, vide Circular No. HO/(83)2025-IMD-POD-1/I/2027/2026 dated 07-01-2026.

2. Background of the Incentive Framework

The incentive framework was introduced to encourage distributors to onboard new individual investors from B-30 cities and new women investors from both T-30 and B-30 cities, thereby promoting wider participation and inclusivity in the securities market.

3. Revised Implementation Timeline

The framework, which was earlier scheduled to come into effect from 01-02-2026, will now be applicable from 01-03-2026. The extension has been granted in response to operational difficulties highlighted by industry participants.

4. Scope and Applicability

The extended timeline applies only to the implementation date of the additional incentive structure. All other provisions, conditions, and operational guidelines prescribed under the earlier SEBI circular shall continue to remain unchanged.

5. Conclusion

By extending the implementation timeline, SEBI has provided additional time to distributors to align their systems and processes with the new incentive framework. The move is expected to facilitate smoother adoption while continuing to support SEBI’s objective of expanding investor outreach and participation.

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