Ch.5 · NFO Process and Rules · medium
What is the NFO allotment process for oversubscribed close-ended schemes?
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EXPLANATION
For oversubscribed close-ended schemes, SEBI mandates pro-rata allotment — each investor receives units proportional to their subscription amount relative to total subscriptions. Excess subscription money must be refunded within 5 business days. This ensures fair treatment of all investors regardless of application size.
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