(1)

A close-ended scheme shall be wound up on the expiry of duration fixed in the scheme on the redemption of the units unless it is rolled over for a further period under sub-regulation (4) of regulation 33.

(2)

A scheme of a mutual fund may be wound up, after repaying the amount due to the unit holders,-

(a) on the happening of any event which, in the opinion of the trustees, requires the scheme to be wound up; or

(b) if seventy-five per cent of the unit holders of a scheme pass a resolution that the scheme be wound up; or

(c) if the Board so directs in the interest of the unitholders.

(3)

Where a scheme is to be wound up under [***] [Inserted by S.O. 32(E), dated 12.1.1998] sub-regulation (2), the trustees shall give notice disclosing the circumstances leading to the winding up of the scheme:-

(a) to the Board; and

(b) in two daily newspapers having circulation all over India, a vernacular newspaper circulating at the place where the mutual fund is formed.