Regulation 46 - Credit of mutual fund units, redemption or Income Distribution cum Capital Withdrawal payouts
Securities and Exchange Board of India (Mutual Funds) Regulations, 2026 Chapter VIII NET ASSET VALUE AND TIMELINES FOR ALLOTMENT OF MUTUAL FUND UNITS AND PAYMENT OF INVESTMENT PROCEEDS
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Mutual fund unit payouts must be transferred timely; late transfers incur 15% annual interest and potential regulatory action. Asset management companies must transfer Income Distribution cum Capital Withdrawal payments, redemption proceeds and application money within Board ... Summary
Mutual fund unit payouts must be transferred timely; late transfers incur 15% annual interest and potential regulatory action.
Asset management companies must transfer Income Distribution cum Capital Withdrawal payments, redemption proceeds and application money within Board specified periods; failure to do so attracts interest at 15% per annum for the delay and may invite additional action by the Board. Physical dispatch is permitted only in exceptional circumstances and must be documented with reasons and records.
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