SEBI issues circular on listing of Mutual Fund schemes which are in the process of winding up

May 22, 2020 | by Avantis RegTech Legal Research Team


Secretarial Compliance

The Securities and Exchange Board of India (SEBI) on May 20, 2020 has issued a Circular on Listing of Mutual Fund schemes that are in the process of winding up. As per SEBI (Mutual Funds) Regulations, 1996, every close-ended scheme and units of segregated portfolio shall be listed on recognized stock exchanges.

The units of Mutual Fund schemes can be listed in the recognized stock exchange. Accordingly, the units of Mutual Fund schemes which are in the process of winding up shall be listed on recognized stock exchange. Initially, the trading in units of such a listed scheme that is under the process of winding up, shall be in dematerialised form. 

SEBI issues the following operational modalities:-

 Mechanism for order placement, execution, payment and settlement;

 Enabling bulk orders to be placed for trading in units;

 Issue related to suspension of trading, declaration of date for determining the eligibility of unitholders etc. in respect of payments to be made by the AMC as part of the winding up process;

 Disclosures to be made by AMCs including disclosure of NAV on daily basis and scheme portfolio periodically etc.

This Circular shall come into force with immediate effect.

[SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2020/086]


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