Smaller towns race ahead in mutual fund distributor growth, but AUM gap remains wide

Sebi subsequently introduced a replacement framework, formalized in a November 2025 circular. Under this new structure, distributors are eligible for a 1% commission on an investor’s first application, capped at ₹2,000 for lump-sum investments (provided the investor remains invested for at least one year), as well as a 1% commission on systematic investment plans (SIPs), subject to the same cap.