SEBI has amended its 2017 circular to allow mutual fund houses to provide immediate access to overnight funds. With this, investors can withdraw money as soon as possible.
The Securities and Exchange Board of India (SEBI) has given the facility of instant access, giving relief to the investors. Under this, you can withdraw money from your fund within a few hours or minutes from the redemption request. Investors can withdraw up to 90% of the value of their units, subject to a limit of Rs.50,000 for the instant access facility.
SEBI has revised its 2017 circular in this regard. Also, mutual fund houses have been allowed to provide instant access to overnight funds. The new rule has been implemented with immediate effect. The instant access facility will be available to those investors who can access their funds within a few hours or minutes of the redemption request.
Will get money soon
Usually it takes 1-2 working days to withdraw money from debt funds including liquid funds. In which the mutual fund house deposits the amount in the bank account of the investor, but under the new order of SEBI, now a new facility has been given. In which they will get the money as soon as possible.
Will invest the fund in another place if the claim is not made
With effect from December 1, 2021, SEBI will allow unclaimed funds and dividends to be invested in overnight schemes, liquid and money market schemes of mutual funds. Earlier such money could be invested in call money, liquid and money market instruments. AMC cannot charge exit load in such schemes.
SEBI also made changes regarding demat account
Market regulator SEBI has made some changes in the rules for those opening new trading and demat accounts. Under this, a nomination form has to be filled before opening the account. Through which the investor can make someone a nominee. If they do not want this, they will have to fill a declaration form instead. This rule will come into effect from 1 October.
