Sebi likely to scrap small town-linked incentive for mutual funds

This comes amid concerns about misuse of framework

The Securities and Exchange Board of India (Sebi) is likely to scrap an incentive it allows fund houses for mobilising assets from smaller centres — called Beyond 30 (B30) in industry parlance. At present, mutual funds can charge up to 30 basis points over and above the total expense ratio (TER) on assets garnered from such places.

Any city or town that does not fall into the so-called T30 category, or the top 30 centres in terms of assets under management (AUM), is part of B30. The B-30 incentive was introduced in 2018 to boost the penetration of MFs in smaller