What is the redemption procedure?
All schemes of the selected Mutual Fund are an open-ended scheme, which means they can be purchased or redeemed at any point of time. In order to redeem funds the investor needs to submit the redemption request in original at the nearest Investor Service Centre. All the redemption request forms must contain the Investor's folio number, the amount / unit he would like to redeem and should be duly signed by the Investors on record or their POA holders. Redemption requests by telephone, telegram, fax or email will not be accepted.
How will the redemption proceeds be paid?
Redemption proceeds will be paid by a payable at par cheque and payments will be made in favour of the first Investor and the bank account number shall be mentioned on the cheque as well.
Redemption proceeds/repurchase price and/or dividend or income earned (if any) will be payable in Indian Rupees only. The Mutual Fund will not be liable for any loss on account of exchange fluctuations, while converting the rupee amount in US Dollar or any other currency.
What is the procedure for the repatriation of redemption proceeds?
Investments made on Repatriation basis
Under the exchange control regulations general permission is granted to authorised dealers to allow repatriation of proceeds of investments made under Repatriable Schemes. The investments shall carry the right of repatriation of capital invested and capital appreciation so long as the investor continues to be a resident outside India , after payment of tax, if any.
In the case of an FII, the designated branch of the authorized dealer may allow remittance of net sale/maturity proceeds (after payment of taxes) or credit the amount of sale/ maturity proceeds to the Foreign Currency account or Non-resident Rupee Account of the FII investor maintained in accordance with the approval granted to it by the RBI [Clause 5(i) of the Regulations].
In any other case, where the investment is made out of inward remittance or from funds held in NRE/FCNR account of the investor, the maturity proceeds/repurchase price of units (after payment of taxes) may be credited to NRE/FCNR/NRO
Account of the non-resident investor maintained with an authorized dealer in India [Clause 5(ii) of the Regulations].
For transfer to overseas account of the Investor Mutual Fund will not be responsible and the Investor will have to contact the Authorized dealer for the same.
Investment made on non-repatriable basis
Where the purchase of units is made on a non-repatriable basis, the maturity proceeds/repurchase price of units (after payment of taxes) will not qualify for repatriation out of India and the same may be credited to the NRO account of the non-resident investor [Clause 5(ii) of the Regulations]. However the interest earned on an NRO Account is repatriable.
Similarly, investments in units purchased in Rupees while the investor was resident of India and becomes non-resident subsequently will not qualify for repatriation of repurchase proceeds of units.
The entire income distribution on investment will however qualify for full repatriation. Investors are advised to contact their banks/tax consultants if they desire remittance of the income distribution on units abroad.
The entire income distribution on investment will however qualify for full repatriation. Investors are advised to contact their banks/tax consultants if they desire remittance of the income distribution on units abroad.
