Load on bonus and reinvested units prohibited; AMCs must disclose non-levy in offer documents and issue addenda for investors. Mutual fund AMCs are directed not to levy entry or exit load on bonus units and on units allotted on reinvestment of dividend; AMCs must disclose this non-levy in draft offer documents filed with the regulator. The no-load requirement applies to redemptions by existing unitholders from the regulator's effective date, and AMCs must issue addenda to scheme documents to implement the change, under the regulator's statutory investor protection and market-regulation powers.
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.
Load on bonus and reinvested units prohibited; AMCs must disclose non-levy in offer documents and issue addenda for investors.
Mutual fund AMCs are directed not to levy entry or exit load on bonus units and on units allotted on reinvestment of dividend; AMCs must disclose this non-levy in draft offer documents filed with the regulator. The no-load requirement applies to redemptions by existing unitholders from the regulator's effective date, and AMCs must issue addenda to scheme documents to implement the change, under the regulator's statutory investor protection and market-regulation powers.
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