Dividend option disclosure: clarify that dividends may include return of capital from the equalization reserve, with segregation in statements. Mutual fund dividend options must be renamed and disclosed to clarify that amounts paid under the dividend option can be distributed out of investors' capital (Equalization Reserve), representing realized gains in the sale price; AMCs must state this in offer documents and ensure consolidated account statements segregate income distribution (NAV appreciation) from capital distribution when distributable surplus is paid.
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.
Dividend option disclosure: clarify that dividends may include return of capital from the equalization reserve, with segregation in statements.
Mutual fund dividend options must be renamed and disclosed to clarify that amounts paid under the dividend option can be distributed out of investors' capital (Equalization Reserve), representing realized gains in the sale price; AMCs must state this in offer documents and ensure consolidated account statements segregate income distribution (NAV appreciation) from capital distribution when distributable surplus is paid.
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