Ch.9 · Systematic Transactions — SIP, SWP, STP · hard

What is the penalty for an AMC if redemption proceeds are not dispatched within the stipulated 3 business days?

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EXPLANATION

SEBI mandates that if an AMC fails to dispatch redemption proceeds within 3 business days, it must pay interest at 15% per annum to the investor for the delay period.

A.A flat penalty of ₹10,000 per day of delay

B.Cancellation of the AMC's SEBI registration

C.Interest at 15% per annum for the period of delay [✓ Correct]

D.Suspension of fresh subscription in that scheme

EXPLANATION

SEBI mandates that if an AMC fails to dispatch redemption proceeds within 3 business days, it must pay interest at 15% per annum to the investor for the delay period.

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