Interest on delayed redemption payments makes asset managers liable for interest and possible penalties under amended mutual fund rules. Where an asset management company fails to despatch redemption or repurchase proceeds within the prescribed period it must pay interest to unit holders at a Board-specified rate for the period of delay, and may additionally be liable to a penalty for such failure. Mutual funds must, within one month after each half-year end, send unit holders a complete statement of scheme portfolio unless the statement is published as an advertisement in a national English newspaper and a regional newspaper where the fund's head office is located.
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.
Interest on delayed redemption payments makes asset managers liable for interest and possible penalties under amended mutual fund rules.
Where an asset management company fails to despatch redemption or repurchase proceeds within the prescribed period it must pay interest to unit holders at a Board-specified rate for the period of delay, and may additionally be liable to a penalty for such failure. Mutual funds must, within one month after each half-year end, send unit holders a complete statement of scheme portfolio unless the statement is published as an advertisement in a national English newspaper and a regional newspaper where the fund's head office is located.
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