SEBI reduces timelines for the transfer of dividend and redemption proceeds to unitholders by AMCs
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- Last Updated on 28 November, 2022
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Circular No. SEBI/HO/IMD/IMD-I DOF2/P/CIR/2022/161, Dated 25-11-2022
SEBI has reduced the timeline for dividends payout to 7 working days from the current 15 days. SEBI clarified that the record date should be two working days from the issue of public notice, wherever applicable, for the purpose of payment of dividends.
With regard to the transfer of redemption or repurchase of goods, the SEBI clarified that the transfer of redemption or repurchase proceeds to the unitholders should be made within 3 working days from the date of redemption or repurchase.
It was further clarified that Interest for the period of delay in transfer of redemption or repurchase or dividend shall be payable to unitholders at the rate of 15% per annum along with the proceeds of redemption or repurchase or dividend.
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