Providing relief to the investors of mutual funds, SEBI has issued an order that now investors can withdraw their money in no time. It may be noted that SEBI has amended its circular issued in 2017 to allow mutual fund houses to provide immediate access to overnight funds. With this now investors can withdraw money as soon as possible..
Money can be withdrawn up to 90 percent
The Securities and Exchange Board of India (SEBI) has provided the facility of estate access, giving relief to the investors. Under this, you can withdraw money from your fund in a few hours or minutes through redemption request. Investors can withdraw up to 90% of the value of their units. Which is subject to the limit of Rs 50000 for the instant access facility. SEBI has allowed mutual fund houses to provide instant access to overnight funds. The new rule has been implemented with immediate effect. The instant facility will be available to investors who can access their funds within a few hours or minutes of the redemption request.
Now you can get money soon
Earlier it used to be that it usually took one to two working days to withdraw money from debt funds including liquid funds. Due to which the mutual fund deposits the amount in the bank account of the house, but after the new order of SEBI, now a new facility has been given. In which they will get the money as soon as possible.
If you do not claim, you will invest the fund elsewhere
With effect from December 1, 2021, SEBI will allow unclaimed money 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 new trading and deman account openers. Under this, a nomination form has to be filled before opening the account. Through which the investor can make anyone a nominee. If they do not want to do so, they will have to fill a declaration form instead. This rule will come into effect from October 1.
