Ch.7 · NAV Calculation Rules · medium
What is the 'redemption proceeds dispatch timeline' for open-ended equity schemes?
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EXPLANATION
SEBI mandates that redemption proceeds for open-ended equity and hybrid schemes must be dispatched to investors within 3 business days from the applicable NAV date (the date of redemption). For liquid funds, proceeds are credited within 1 business day (T+1). Failure to meet these timelines results in the AMC paying 15% per annum interest penalty to the investor.
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