Ch.7 · NAV Calculation Rules · medium
What is the penalty for delayed redemption payment by an AMC?
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EXPLANATION
If an AMC fails to dispatch redemption proceeds within the prescribed timeline (3 business days for equity, 1 business day for liquid), it must pay 15% per annum interest on the delayed amount to the investor — calculated from the due date to the actual payment date. This penalty is prescribed under SEBI (Mutual Funds) Regulations and is payable directly to the investor, not to SEBI.
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