(1)

The asset management company shall specify in the offer document,-

(a) the minimum subscription amount it seeks to raise under the scheme; and

(b) in case of oversubscription the extent of subscription it may retain :

(2)

The mutual fund and asset management company shall be liable to refund the application money to the applicants,-

(i) if the mutual fund fails to receive the minimum subscription amount referred to in clause (a) of sub-regulation (1);

(ii) if the moneys received from the applicants for units are in excess of subscription as referred to in clause (b) of sub-regulation (1).

(3)

Any amount refundable under sub-regulation (2) shall be refunded within a period of [five working days] [Substituted 'six weeks' Notification No. LAD-NRO/GN/2010-11/13/13945, dated 29.7.2010.] from the date of closure of subscription list, by Registered post with acknowledgement due and by cheque or demand draft marked "A/c payee " to the applicants.

[Provided that in case of mutual fund schemes eligible under Rajiv Gandhi Equity Savings Scheme, the period specified in this sub-regulation shall be fifteen days from the closure of the initial subscription list.] [Inserted by Notification No. LAD-NRO/GN/2013-14/12/6108, dated 19.6.2013.]

(4)

In the event of failure to refund the amounts within the period specified in sub-regulation (3), the asset management company shall be liable to pay interest to the applicants at a rate of fifteen per cent per annum from the expiry of [five working days] [Substituted 'six weeks' Notification No. LAD-NRO/GN/2010-11/13/13945, dated 29.7.2010.] from the date of closure of the subscription list.

[Provided that in case of mutual fund schemes eligible under Rajiv Gandhi Equity Savings Scheme, the period specified in this sub-regulation shall be fifteen days from the closure of the initial subscription list.] [Inserted by Notification No. LAD-NRO/GN/2013-14/12/6108, dated 19.6.2013.]