Consolidation of mutual fund schemes requires board approval, investor exit at prevailing NAV, and detailed investor disclosures. Consolidation of mutual fund schemes is a change in fundamental attributes and requires approval by the Boards of the AMC and Trustees, and filing of the proposal, draft offer document and draft unitholder letter with SEBI. Unitholders must be offered an exit at prevailing NAV without exit load with specified disclosures including the new scheme's features, unit allocation illustration, percentages of NPAs and illiquid assets, and tax impact. AMCs must maintain dispatch records and file a report to SEBI detailing unitholder numbers and net assets pre- and post-consolidation.
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.
Consolidation of mutual fund schemes requires board approval, investor exit at prevailing NAV, and detailed investor disclosures.
Consolidation of mutual fund schemes is a change in fundamental attributes and requires approval by the Boards of the AMC and Trustees, and filing of the proposal, draft offer document and draft unitholder letter with SEBI. Unitholders must be offered an exit at prevailing NAV without exit load with specified disclosures including the new scheme's features, unit allocation illustration, percentages of NPAs and illiquid assets, and tax impact. AMCs must maintain dispatch records and file a report to SEBI detailing unitholder numbers and net assets pre- and post-consolidation.
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