- Every mutual fund and asset management company shall,

(a) despatch to the unitholders the dividend warrants within 42 days of the declaration of the dividend;

(b) despatch the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase;

(c) [ in the event of failure to despatch the redemption or repurchase proceeds within the period specified in sub-clause (b), the asset management company shall be liable to pay interest to the unitholders at such rate as may be specified by the Board for the period of such delay; [Inserted by S.O. 235(E), dated 14.3.2000]

(d) notwithstanding payment of such interest to the unit-holders under sub-clause (c), the asset management company may be liable for penalty for failure to despatch the redemption or repurchase proceeds within the stipulated time.]