Ch.3 · Sponsor, Trustee and AMC Roles · medium
What is 'scheme merger' and what protection do unit holders have during a merger?
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EXPLANATION
Scheme merger involves one scheme (merging scheme) being absorbed into another (surviving scheme). Unit holders of the merging scheme receive units of the surviving scheme based on the NAV ratio. SEBI mandates that unit holders be given a 30-day exit window without exit load to protect those who do not wish to hold units of the surviving scheme.
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