AMCs to be penalised for delay in dividend, redemption payments: Sebi

Any delay in dividend payment beyond seven working days to attract interest charge at 15% a year; investors to get redemption money within three working days, from 10 earlier

The Securities and Exchange Board of India (Sebi) has amended the timelines for transfer of dividend and redemption proceeds for mutual fund unitholders along with mandating an interest payment of 15 per cent per annum payable to investors from fund houses for the period of delay.

In a circular released on Friday, Sebi mandated asset management companies (AMCs) to make dividend payment within seven working days from record date.

Fund houses will also have to transfer proceeds to the investors within three working days from the date of redemption or repurchase.

Earlier AMCs could make dividend payments within 30 days