SEBI Extends Timeline for Distributor Incentive Framework

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SEBI Distributor Incentive Timeline Extension

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.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied