Allahabad HC Explains: Does Conversion Automatically Strip a Person of Scheduled Tribe Status?  ||  Delhi HC Rejects Vimal Elaichi Plea against FDA Notice to Shah Rukh Khan, Ajay Devgn, Tiger Shroff  ||  Calcutta HC Upholds Jail Term for Owner Over Unauthorised Construction under Roof-Repair Permit  ||  P&H HC: 'Judges Must Have Spine to Do Justice'; 76-Year-Old PMLA Accused Gets Bail on Ill-Health  ||  Punjab & Haryana HC: Bail Granted to Two More UGC NET Paper Leak Accused, Including Kingpin  ||  Kerala HC: Police Cover for Big TV Journalist Threatened over Muslim Scholar's Remarks  ||  SC: Electricity Dues over 2 Years Recoverable only if Shown Continuously as Outstanding  ||  Allahabad HC Criticises UP Govt for Using Goondas Act as a ‘Tool of Oppression’  ||  Gujarat HC: Complaint Made in Good Faith does not Amount to Defamation  ||  Allahabad HC: Bar Association Membership Disputes Are Private, Outside Writ Jurisdiction    

Restriction on redemption of Mutual Funds- (Securities and Exchange Board of India) (31 May 2016)

MANU/SMFD/0004/2016

Capital Market

In efforts to quell disparity in imposition of restrictions on redemption of mutual funds, the Securities and Exchange Board of India clarified that redemption can be curtailed “when there are circumstance leading to a systemic crisis or event that severely constricts market liquidity”.

Restrictions are envisaged to last between 10 and 90 working days and the SEBI expects to be informed of the same. Redemption requests up to Rs. 2 lakh will not be subject to restriction.

Information pertaining to restrictions will have to be prominently disclosed to investors in scheme related documentation.

So far, restrictions on redemption of mutual funds have been left to funds’ devices. Such restrictions, at present also used in oblique circumstance being faced by individual entities, were intended to ve limited to excessive requests arising out of market crises.

Tags : MUTUAL FUND   REDEMPTION   RESTRICTION   SEBI  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved