What is the 'CDSC' (Contingent Deferred Sales Charge) concept that existed before SEBI's 2009 entry load ban?

EXPLANATION

CDSC was a back-end load structure (alternative to front-end entry load) where the exit charge declined the longer the investor stayed invested. It incentivised long-term holding — investors who stayed beyond 3-4 years paid no exit load. Post the 2009 ban on entry loads and the 2018 ban on upfront commissions, most schemes now use simpler exit load structures (1% within 1 year, nil thereafter).