SEBI Updates Rules on Timely Dividend and Redemption Payments; AMCs Face Penalties for Delays.

The Securities and Exchange Board of India (SEBI) has amended regulations concerning the timelines for transferring dividend and redemption proceeds to unitholders. Dividends must be paid within seven working days from the record date, which is set two working days after public notice issuance. Redemption or repurchase proceeds must be transferred within three working days, or five days for certain overseas investments. SEBI requires the Association of Mutual Funds in India (AMFI) to list exceptions for delays. Any delay incurs a 15% annual interest payable to unitholders, borne by Asset Management Companies (AMCs), with details reported to SEBI.

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