Capital markets regulator Sebi has notified new rules for asset management companies (AMCs) pertaining to transfer of dividend and redemption proceeds to mutual fund unitholders.
Under this, every mutual fund and asset management company would be required to transfer to the unitholders the dividend payments and the redemption or repurchase proceeds within a period specified by Sebi, the regulator said in a notification made public on Thursday.
In case of failure to transfer the proceeds within the specified period, the AMC would be liable to pay interest to the unitholders for the period of such delay.
“Notwithstanding payment of such interest to the unit-holders…the asset management company may be liable for action for failure to transfer the redemption or repurchase proceeds or dividend payments within the stipulated time,” Sebi said.
It further said that physical despatch of redemption or repurchase proceeds or dividend payments would be carried out only in exceptional …
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