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Mutual funds (MFs) have to pay dividend to unit-holders in seven working days after declaration of record date.
In a circular issued on Friday, SEBI said the record date will be two working days from the issue of public notice on dividend payment.
The transfer of redemption proceeds to the unit-holders should be made in three working days from the date of redemption, it said.
On paying redemption proceeds for schemes investing at least 80 per cent of total assets overseas, the transfer of redemption proceeds should be made in five working days from the date of redemption, it said.
List of exceptions
AMFI, in consultation with SEBI, will publish a list of exceptional circumstances for schemes unable to transfer redemption proceeds to investors within the stipulated time. It will also mention the time frame for payment in such circumstances and the list will be published within 30 days, said SEBI.
In case of delay in payment of redemption proceeds, MFs have to pay an interest of 15 per cent per annum to unit-holders and the cost will be borne by the fund houses, it added.
Insider trading regulation
SEBI also gazetted its decision to include mutual fund houses in the stringent SEBI Prohibition of Insider Trading regulations on Friday.
In October, SEBI, in its board meeting, decided to include MF units in the insider trading regulations and has now issued detailed guidelines.
“No insider shall trade in the units of a scheme of an MF, when in possession of unpublished price-sensitive information, which may have a material impact on the net asset value of a scheme or may have a material impact on the interest of the unit-holders of the scheme,” SEBI said in a notification.
SEBI has specified a list of people who will be considered insiders and be covered under the regulations. Besides employees and board of directors of a fund house, it has named sponsor and holding company, and AMFI, auditor, legal advisor, consultant, distributor and bankers who are connected with the fund house.
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