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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services

A unitholder redeems units in an open-ended equity scheme. The AMC must dispatch redemption proceeds within how many working days of the date of redemption request, failing which interest at the SEBI-prescribed rate is payable?

Redemption proceeds for most open-ended schemes must be dispatched within 3 working days of the request. If the AMC delays, it must pay interest at 15% per annum to the unitholder. Longer periods such as 10 or 30 days are not the standard rule.

  1. A3 working days (T+3) for most open-ended schemes, with the interest rate of 15% per annum payable on delayCorrect
  2. B10 working days with interest of 6% per annum
  3. C15 working days with no interest
  4. D30 working days with interest of 12% per annum

Explanation

SEBI requires redemption proceeds to be dispatched within 3 working days for most open-ended schemes; delay attracts interest at 15% per annum. The other periods and rates do not match the rule.

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