SEBI Considers Additional Incentives for First-Time Female Mutual Fund Investors

The Securities and Exchange Board of India (SEBI) has proposed new measures to increase women’s participation in mutual funds, as per news reports. Chairman Tuhin Kanta Pandey said on Friday that distributors could receive additional incentives for bringing in first-time female investors. He added that financial inclusion will remain incomplete unless women are equally represented.

Incentives for Wider Participation

The new proposal builds on SEBI’s earlier step to reward distributors for attracting first-time investors from “B30” cities, those beyond the top 30 urban centres. By extending similar benefits to women investors, SEBI aims to expand the mutual fund industry’s reach in regions where participation remains low.

Mutual Fund Scheme Review

Pandey also said SEBI is reviewing the categorisation of mutual fund schemes. The objective is to provide greater clarity, reduce overlap in portfolios, and allow more room for product innovation. The regulator has received feedback from industry stakeholders, and the next steps will be taken after considering those inputs.

Compliance Simplification

As per news reports, in recent months, SEBI has focused on easing compliance requirements for asset management companies (AMCs). It has discontinued the need to file more than 52 reports, notices, and addendums with the regulator. Over the next few months, SEBI plans to further simplify mutual fund regulations to reduce the compliance burden while continuing to protect investor interests.

Call for Broader SIP Adoption

At the AMFI event, Pandey described small Systematic Investment Plans (SIPs) as the foundation of financial security and encouraged their adoption in every household. He said that SIPs, even with small amounts, can play a role in expanding mutual fund participation across tier-2 and tier-3 cities.

Industry Awareness Initiatives

On its 30th Foundation Day, AMFI launched several investor education efforts. These include the ‘Investment Ka Sahi Kadam’ campaign in 13 languages, over 30 on-ground investor camps, and the ‘Bharat Nivesh Rail Yatra’ on Vande Bharat trains. AMFI also unveiled a revamped version of the Mutual Funds Sahi Hai website with multilingual support.

Read more: What is the 15*15*15 Rule in Mutual Funds?

Data Privacy and Accountability

Pandey stressed that mutual fund houses will remain fully accountable for the activities of their vendors and third-party partners. He highlighted that data privacy must be prioritised, and mutual funds need to be vigilant against risks such as fraudulent redemptions in the digital age.

Conclusion

With new incentives for women, simplified compliance, and industry-led awareness drives, SEBI aims to increase mutual fund penetration and broaden investor participation across the country.

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