SEBI Shortens the Period For Paying Dividends To Owners Of Mutual Fund Units

The timeline for dividend payment has been reduced to seven working days from the issue of public notice, where applicable, by Asset Management Companies .

The timeline for dividend payment has been reduced to seven working days from the issue of public notice, where applicable, by Asset Management Companies (AMCs), according to Sebi.In consultation with Sebi, industry body Association of Mutual Funds in India (AMFI) will publish a list of unusual circumstances for schemes that are unable to transfer redemption or repurchase proceeds to the unitholders within the prescribed time frame.The list would be released within 30 days, according to the regulator, and AMCs would pay interest to unitholders at a rate of 15 percent per annum along with the proceeds of redemption, repurchase, or dividend, as the case may be.The details of such payments would be sent to Sebi as part of Compliance Test Reports.

.
.
.
.