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Registration Of An Open Ended Scheme Essay

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Certificates: Under a close ended scheme, an investor is entitled to receive shares or unit certificates allotted to him within a period of 10 weeks from the date of disclosure of subscription. Under an open ended scheme this period is six weeks from the date of disclosure of initial offer. ii) Transfer: An investor is entitled to get the unit of shares certificates transferred with a period of 30 days from the date of lodgment of the offer. 216 iii) Refund: If the total collection of funds by mutual funds is less than the statutory minimum, the applicants are entitled to receive the entire application money as refund, within a period of six weeks from the date of disclosure of the subscription. If the refund is delayed beyond this period, the applicants are entitled to receive, along with the application money, interest at the rate of 15% p.a. for the period of delay. iv) Disclosure: (a) An investor under a mutual fund scheme is entitled to receive information about the net asset value at the intervals not exceeding three months in the case of close ended schemes and one month in the case of open ended schemes. This information should be published in at least two daily newspapers. (b) Every mutual fund is required to publish the audited annual report and audited half-yearly report though prominent newspaper in respect of each of its scheme, within six months and three months respectively, of the date of disclosure of accounts. This set of guidelines will go a long

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