Mutual funds have to pay 15% interest for delay in redemption, dividend payment

Capital market regulator has amended mutual fund rules with regard to switch of dividend and redemption proceeds to unitholders. In case of delay past the stipulated interval, mutual fund homes have to pay interest for the interval of delay in switch of redemption or repurchase or dividend to unitholders on the fee of 15% each year together with the proceeds of redemption or repurchase or dividend. 

Here are the brand new guidelines for Mutual fund switch of Dividend Payment

-The document date shall be two working days from the problem of public discover, wherever relevant, for the aim of payment of dividend

-The payment of dividend to the unitholders shall be made inside seven working days from the document date.

Here are the brand new mutual fund guidelines for switch of redemption or repurchase proceeds

 -The switch of redemption or repurchase proceeds to the unitholders shall be made inside three working days from the date of redemption or repurchase

-For schemes investing a minimum of 80% of whole property in permissible abroad investments, the switch of redemption or repurchase proceeds to the unitholders shall be made inside 5 working days from the date of redemption or repurchase.

Mutual fund AMFI, in session with Sebi, shall publish a listing of remarkable circumstances for schemes unable to switch redemption or repurchase proceeds to traders, together with relevant timeframe for switch of redemption or repurchase proceeds to the unitholders in such distinctive circumstances, the round mentioned. 

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