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<h1>Regulation 37: Mutual Fund Units Transferable Unless Restricted; Demat Required for Trading Close-Ended Schemes on Stock Exchanges.</h1> Regulation 37 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, outlines the transferability of mutual fund units. Units are generally freely transferable unless restricted by the scheme. For close-ended schemes listed on recognized stock exchanges, units must be held in dematerialized form for trading. Asset management companies must register transfers and return unit certificates to transferees within thirty days upon receiving the transfer instrument and unit certificates. If units are held with a depository, transfers must comply with the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.