Listing of Mutual Fund schemes that are in the process of winding up
Summary
This circular mandates the listing of mutual fund schemes undergoing winding up on recognized stock exchanges to provide an exit channel for investors. It prohibits AMCs, sponsors, and trustees from transacting in the units of such schemes while allowing trading in dematerialized form. Stock exchanges are required to finalize operational modalities for trading and settlement within seven days of the circular's issuance.
Text
every close-ended scheme and units of segregated portfolio shall be listed on recognized stock exchanges.
units of Mutual Fund schemes which are in the process of winding-up... shall be listed on recognized stock exchange, subject to compliance with listing formalities as stipulated by the stock exchange.
trading on stock exchange mechanism will not be mandatory for investors, rather, if they so desire, may avail an optional channel to exit provided to them.
Initially, trading in units of such a listed scheme that is under the process of winding up, shall be in dematerialised form.
AMCs shall enable transfer of such units which are held in form of Statement of Account (SoA) / unit certificates.
Detailed operational modalities for trading and settlement... shall be finalized by the stock exchanges where units of such schemes are being listed, in consultation with SEBI.
The stock exchange shall develop a mechanism along with RTA for trading and settlement of such units held in the form of SoA/ Unit Certificate
The AMC, its sponsor, employees of AMC and Trustee shall not be permitted to transact (buy or sell) in the units of such schemes that are under the process of being wound up.
Stock exchanges desirous of offering this facility, shall submit the detailed operational modalities to SEBI, within 7 days from date of issuance of this Circular.
Source: SecMarx — Listing of Mutual Fund schemes that are in the process of winding up. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.