Ch.3 · Sponsor, Trustee and AMC Roles · medium

What is 'winding up' of a mutual fund scheme and under what conditions can it occur?

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EXPLANATION

Winding up involves terminating a scheme, liquidating all portfolio assets, settling liabilities, and distributing net proceeds proportionally to unit holders. It can be triggered by: trustees deciding it is in unit holders' best interest, 75% of unit holders by value voting for it, or SEBI directing it for regulatory reasons.

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