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The Securities Exchange Board of India (SEBI) on Friday cleared a proposal for facilitating faster payout of redemption and dividend of Mutual funds to unitholders by AMCs.The payout process for redemption and payment of dividend to unitholders will change from existing 10 and 15 working days, respectively to 3 and 7 working days.
The SEBI Chairperson Ms. Madhabi Puri Buch said, “The old regulations were drafted when cheques were issued. Today, the payments systems are so advanced and fantastic, so there is no need for a delay and such a long time limit for investors to get their money."
Therefore, SEBI in the board meeting conducted on Friday approved the proposal to facilitate faster payout of redemptions and dividends to mutual fund unitholders.