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        SEBI

        Regulation 35 - Transfer of units

        Securities and Exchange Board of India (Mutual Funds) Regulations, 2026
        Chapter V
        SCHEMES OF MUTUAL FUND

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        Mutual fund units are freely transferable unless restricted; exchange trading requires dematerialised holdings for transfer. Regulation 35 provides that, unless restricted by the scheme, a unit shall be freely transferable; units listed on a recognized stock exchange must be held in dematerialised form for trading. The asset management company must allow transfers as specified by the Board, and units held with a depository are transferable in accordance with depository regulations.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Mutual fund units are freely transferable unless restricted; exchange trading requires dematerialised holdings for transfer.

                                Regulation 35 provides that, unless restricted by the scheme, a unit shall be freely transferable; units listed on a recognized stock exchange must be held in dematerialised form for trading. The asset management company must allow transfers as specified by the Board, and units held with a depository are transferable in accordance with depository regulations.


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