SEBI notified regarding Timelines for the transfer of dividend and redemption proceeds to unitholders

Nov 26, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Securities and Exchange Board of India (SEBI) on November 25, 2022, issued a notification regarding Timelines for the transfer of dividend and redemption proceeds to unitholders.

The following has been stated after the amendment in SEBI (Mutual Funds) Regulations, 1996 namely: -

• Transfer of dividend payments – 

1. The record date shall be two working days from the issue of a public notice, wherever applicable, for the purpose of payment of a dividend.

2. The payment of a dividend to the unitholders shall be made within seven working days from the record date.

• Transfer of Redemption or Repurchase Proceeds – 

1. The transfer of redemption or repurchase proceeds to the unitholders shall be made within three working days from the date of redemption or repurchase

2. The transfer of redemption or repurchase proceeds to the unitholders for schemes investing at least 80% of total assets in such permissible overseas investments, shall be made within five working days from the date of redemption or repurchase.

• Interest for the period of delay in transfer of redemption or repurchase or dividend shall be payable to unitholders at the rate of 15% per annum along with the proceeds of redemption or repurchase or dividend, as the case may be. Such Interest shall be borne by AMCs. The details of such payments shall be sent to SEBI as part of Compliance Test Reports in the prescribed format attached to Annexure A of the notification.

 

[Notification No. SEBI/HO/IMD/IMD-I DOF2/CIR/2022/161]

 


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