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SEBI Reduces Delays in Paying Dividends to Mutual Fund Unitholders


Sebi reduced the deadlines for the payment of the dividend to unitholders by the AMCs. (File)

New Delhi:

The capital markets regulator Securities and Exchange Board of India (Sebi) has today reduced the time limits for payment of redemption amount and dividend to unitholders by asset management companies (AMCs).

In a circular, Sebi reduced the dividend payment period to seven working days from the current 15 days.

He said the record date would be two business days from the publication of the public notice, if any, for the purposes of payment of the dividend.

“The payment of the dividend to unitholders will be made within seven business days from the record date,” Sebi said.

It further reduced the redemption payment period to three working days from the existing 10 working days.

“The transfer of redemption or redemption proceeds to unitholders must be made within three business days from the date of redemption or redemption,” Sebi said.

For plans investing at least 80% of total assets in such permitted offshore investments, the transfer of redemption or redemption proceeds to unitholders would be made within five business days of the date of redemption or redemption. .

In consultation with Sebi, industry body Association of Mutual Funds in India (AMFI) would publish a list of exceptional circumstances for schemes unable to transfer redemption or redemption proceeds to investors within the prescribed period, along with the applicable time limit for the transfer of redemption or repurchase. produced to Unitholders in such exceptional circumstances. The list would be published within 30 days.

The regulator said interest for the period of delay in transferring the redemption or redemption or dividend would be payable to unitholders at the rate of 15% per annum with the redemption or redemption or dividend proceeds, depending on the case. be.

These interests would be borne by the AMCs and the details of these payments would be sent to Sebi as part of the compliance test reports.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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