Mutual funds bat for location-neutral incentives to bring new investors

Sector experts say the momentum from smaller cities and towns remains strong

Fund houses have asked the Securities and Exchange Board of India (Sebi) to consider changes in the existing system of incentives for bringing in customers from smaller cities and towns.

Instead of the existing incentive for tapping investors beyond the top 30 (earlier beyond the top 15) locations, they want the markets regulator to allow them to charge extra for bringing in first-time investors, irrespective of whether they belong to top cities or smaller towns. It is unclear if the regulator will consider this. An email to Sebi did not elicit any response.

“We are assuming the market for top