TaxTMI 
TaxTMI 
Rationalisation of Initial Issue Expenses and Dividend distribution procedure for Mutual Funds
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....Sirs, Re: Rationalisation of Initial Issue Expenses and Dividend distribution procedure for Mutual Funds In order to clarify the expense structure in SEBI (Mutual Funds) Regulations, 1996 with greater precision and to introduce uniform practices in procedure for dividend distribution by the mutual funds, SEBI Board in a recent meeting decided as under: I. Rationalisation of Initial Issue ....
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....er the balance unamortised amount has been fully recovered from the scheme. II. Dividend Distribution Procedure for Mutual Funds Regulation 53(a) of SEBI (Mutual Funds) Regulations, 1996 permit the mutual funds to distribute returns including dividend. It was noted that mutual funds were following different procedures for dividend distribution. To introduce uniform practices in procedu....
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.... the public communicating the decision including the record date. The record date shall be 5 calendar days from the issue of notice. d. Such notice shall be given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the mutual fund is situated. e. The notice shall, in font size 10, ....
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....he listing agreement. Advertisement All Advertisements, in any media, containing proposed dividend shall, in the same font as dividend figure (in percentage or in absolute terms), disclose immediately below the dividend figure that the NAV of the scheme, pursuant to payment of dividend would fall to the extent of payout and statutory levy (if applicable). This circular would be applicable....