Regulation 33 - Repurchase of close ended schemes - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Repurchase of close ended schemes 33. 1 [(1) Units of a close ended scheme, other than those of an equity linked savings scheme, launched on or after the commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2009 shall not be repurchased before the end of maturity period of such scheme.] (2) The units of close ended schemes referred to in the proviso to regulation 32 may be open for sale or redemption at fixed predetermined intervals 2 [***] if the maximum and minimum amount of sale or redemption of the units and the periodicity of such sale or redemption have been disclosed in the offer document. 3 [***] (3) The units of close ended scheme may be converted into open-ended scheme,- (a) if the offer document of such scheme discloses the option and the period of such conversion; or 4 [(b) the unitholders are provided with an option to redeem their units in full 5 [; and]] 9 [ **** ] (4) A close ended scheme shall be fully redeemed at the end of the maturity period 7 [***] 8 [Provided that a close-ended scheme may be allowed to be rolled over if the purpose, period and other terms of the roll over and all other material details of the scheme including the likely composition of assets immediately before the roll over, the net assets and net asset value of the scheme, are disclosed to the unitholders and a copy of the same has been filed with the Board : Provided further that such roll over will be permitted only in the case of those unitholders who express their consent in writing and the unitholders who do not opt for the roll over or have not given written consent shall be allowed to redeem their holdings in full at net asset value based price.] ************ NOTES:- 1 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2009, w.e.f. 8-4-2009. Prior to its substitution, clause (1) read as under; (1) The asset management company may at its option repurchase or reissue the repurchased units of a close ended scheme. 2 Words without listing omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998. 3 Omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2009, w.e.f. 8-4-2009. Prior to omission, clause (2A) read as under; * [(2A) The asset management company shall not repurchase units of a capital protection oriented scheme before end of the maturity period.] [*Inserted by the SEBI (Mutual Funds) (Third Amendment) Regulations, 2006, w.e.f. 3-8-2006.] 4 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998, for the words the majority of the unitholders gives a consent to that effect. 5 Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f22-5-2006. 6 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. Prior to its substitution, clause (c) read as under; *[(c) the initial issue expenses of the scheme have been amortised fully in accordance with the Tenth Schedule.] [*Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f. 22-5-2006.] 7 The words, unless a majority of the unitholders otherwise decide for its roll over by passing a resolution omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998. 8 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998 9. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/08 dated 04-02-2021 w.e.f. 30th day from the date of their publication in the Official Gazette, that is 04-02-2021 before it was read as 6 [(c) the initial issue expenses of the scheme launched prior to commencement of the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2008 have been amortised fully in accordance with the Tenth Schedule.]