Regulation 53 - Transfer of dividend and redemption proceeds - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

7 [Transfer of dividend and redemption proceeds 53. Every 8 [ **** ] asset management company shall, (a) transfer to the unitholders the dividend payments within such period as may be specified by the Board from time to time; (b) transfer to the unitholders the redemption or repurchase proceeds within such period as may be specified by the Board from time to time; (c) in the event of failure to transfer the redemption or repurchase proceeds or dividend payments within the period specified in clauses (a) and (b), the asset management company shall be liable to pay interest to the unitholders at such rate as may be specified by the Board for the period of such delay; (d) notwithstanding payment of such interest to the unit-holders under clause (c), the asset management company may be liable for action for failure to transfer the redemption or repurchase proceeds or dividend payments within the stipulated time: Provided that physical despatch of redemption or repurchase proceeds or dividend payments shall be carried out only in exceptional circumstances and asset management companies shall be required to maintain records along with reasons for all such physical despatches. ] *********** NOTES:- 1 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2001, w.e.f. 23-7-2001, for 42 . 2 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2000, w.e.f. 14-3-2000. 3. Substituted 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 (a) despatch to the unitholders the dividend warrants within 1 [30] days of the declaration of the dividend; 4. Inserted 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 5. Substituted 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 sub-clause 6. Inserted 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 7. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/106 dated 15-11-2022 before it was read as, Despatch of warrants and proceeds 53. Every mutual fund and asset management company shall, 3 [ (a) despatch to the unitholders the dividend payments within 15 days from the record date. ] (b) despatch the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase; 2 [(c) in the event of failure to despatch the redemption or repurchase proceeds 4 [ or dividend payments ] within the period specified in 5 [ sub-clauses (a) and ] (b), the asset management company shall be liable to pay interest to the unitholders at such rate as may be specified by the Board for the period of such delay; (d) notwithstanding payment of such interest to the unit-holders under sub-clause (c), the asset management company may be liable for penalty for failure to despatch the 6 [ dividend o r ] redemption or repurchase proceeds within the stipulated time.] 8. Omitted vide Notification No. SEBI/LAD-NRO/GN/2023/134 dated 26-06-2023 w.e.f. 01-01-2024 before it was read as, mutual fund and