Restriction on redemption: temporary limits during systemic market illiquidity with exemptions for small redemptions and board approval. Restriction on redemption may be imposed only for market-wide illiquidity, market failures, exchange disruptions, or exceptional operational force majeure despite adequate disaster recovery. Such restriction requires specific approval of AMC Boards and Trustees, immediate intimation to SEBI, prominent disclosure in scheme documents, and is limited to a period not exceeding 10 working days in any 90 day period. Small redemption requests are exempted from restriction and larger redemptions must be partially processed up to the exempted amount. AMCs must maintain internal liquidity management and cannot use restriction for issuer-specific illiquidity or poor investment decisions.
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.
Restriction on redemption: temporary limits during systemic market illiquidity with exemptions for small redemptions and board approval.
Restriction on redemption may be imposed only for market-wide illiquidity, market failures, exchange disruptions, or exceptional operational force majeure despite adequate disaster recovery. Such restriction requires specific approval of AMC Boards and Trustees, immediate intimation to SEBI, prominent disclosure in scheme documents, and is limited to a period not exceeding 10 working days in any 90 day period. Small redemption requests are exempted from restriction and larger redemptions must be partially processed up to the exempted amount. AMCs must maintain internal liquidity management and cannot use restriction for issuer-specific illiquidity or poor investment decisions.
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