SEBI is responsible for controlling all mutual funds in India and has laid down some concrete guidelines for mutual fund investors.
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Top 7 Mutual Fund Holders Rights and Protections
- Investors should be informed about the investment strategy, investment objectives, financial position, and overall management of the scheme.
- He should receive the certificate or statement of account of the units in the name of the investor within six weeks from the commencement of investment.
- Within 42 days after the declaration of dividend, it must be credited directly to the investor or to the bank account provided by him. Similarly, if any of the redemption or repurchase notices are given in the scheme, it should be implemented within a maximum of 10 days.
- The trustee of a mutual fund company is obliged to inform the investors in a timely manner about any disclosures that may adversely affect the investment you have made.
- Any mutual fund plan can be rolled out by the consensus of 75% of its unit holders.
- Similarly, 75% of unit holders will be able to close an asset management company that manages mutual funds after the prior approval of SEBI.
- In any of the above cases, if the investor’s rights have been violated, it can be reported to SEBI and the matter can be followed up with mutual funds through SEBI.
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