Gazette notification on unitholders approval for winding up of mutual fund schemes
- A provision says that where a scheme is to be wound up.. the trustees shall obtain consent of the unit holders participating in the voting by simple majority on the basis of one vote per unit and publish the results of voting within 45 days from the publication of notice
SEBI’s rules for mutual fund trustees to secure unitholders’ consent before winding up a scheme or prematurely redeeming units of a close-ended scheme are now notified through a gazette. SEBI mandated these rules in its board meeting held on December 28 following a Supreme Court’s ruling in the Franklin Templeton case.
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