Regulation 39 - Winding up - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

Winding up 39. (1) A close-ended scheme shall be wound up on the expiry of duration fixed in the scheme on the redemption of the units unless it is rolled over for a further period under sub-regulation (4) of regulation 33. (2) A scheme of a mutual fund 2 [ is to be wound up ] ,- (a) on the happening of any event which, in the opinion of the trustees, requires the scheme to be wound up; or (b) if seventy-five per cent of the unit holders of a scheme pass a resolution that the scheme be wound up; or (c) if the Board so directs in the interest of the unitholders. 3 [ (3) Where a scheme is to be wound up under sub-regulation (2), the trustees shall give notice within one day, disclosing the circumstances leading to the winding up of the scheme, - a) to the Board; and b) in two daily newspapers having circulation all over India, a vernacular newspaper circulating at the place where the mutual fund is formed: Provided that where a scheme is to be wound up under clause (a) of sub-regulation (2), the trustees shall obtain consent of the unit holders participating in the voting by simple majority on the basis of one vote per unit and publish the results of voting within forty five days from the publication of notice under sub-regulation (3): Provided further that in case the trustees fail to obtain the required consent of the unitholders under clause (a) of sub-regulation (2), the schemes shall be reopened for business activities from the second business day after publication of results of the voting. ] ************** NOTES:- 1 Words sub-regulation (1) or omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998. 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as may be wound up, after repaying the amount due to the unit holders 3. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/70 dated 25-01-2022 before it was read as (3) Where a scheme is to be wound up under 1 [***] sub-regulation (2), the trustees shall give notice disclosing the circumstances leading to the winding up of the scheme:- (a) to the Board; and (b) in two daily newspapers having circulation all over India, a vernacular newspaper circulating at the place where the mutual fund is formed.