Ch.3 · Sponsor, Trustee and AMC Roles · hard
What must happen to a mutual fund scheme before it can be formally wound up?
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EXPLANATION
The winding up process requires: (1) Trustees publish a public notice of winding up; (2) All outstanding liabilities are settled; (3) Portfolio assets are liquidated at best prices; (4) Net proceeds are distributed proportionally to unit holders; (5) Trustees submit a final report to SEBI and AMFI. Unit holders cannot transact (buy/sell) during this period.
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