Ch.4 · AMFI Code of Conduct · hard

If a mutual fund fails to dispatch redemption proceeds within the prescribed timeline, what is the penalty payable to the investor?

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EXPLANATION

If a mutual fund fails to dispatch redemption proceeds within the prescribed timeline (3 working days for equity funds), it must pay interest at 15% per annum for each day of delay to the unit holder. This is prescribed under SEBI (Mutual Funds) Regulations, 1996.

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