Securities and Exchange Board of India (SEBI)
Investor Education Programme
Basics of Mutual Funds and their operations

Chapter XI / Oct 6

Units need to be transferred within 30 days

According to SEBI regulations, transfer of units is required to be done within thirty days from the date of lodgment of certificates with the mutual fund (MF).

As a unit-holder, how much time will it take to receive dividends / repurchase proceeds?

A MF is required to  dispatch to the unit-holders the dividend warrants within 30 days of the declaration of the dividend and the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase request made by the unit-holder.

In case of failures to dispatch the redemption / repurchase proceeds within the stipulated time period, Asset Management Company (AMC) is liable to pay interest as specified by SEBI from time to time (15% at present).