sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
 Interim budget may include income tax announcements, says report
 All you need to know about tax benefits for senior, super senior citizens
 Where to invest money for the short term
 Statistics ministry seeks GST data to improve national accounts
 Country of residence may tax you on global income
 Country of residence may tax you on global income
 SC denies income tax exemption to local authority
 Composition Dealers need not furnish data in serial number 4A of Table 4 of FORM GSTR-4
 I-T Dept may probe tax evasion through F&O trades
 IL&FS crisis: ICAI seeks explanation from audit firms
 Arun Jaitley pushes for more tax filing in FY19

SEBI: Brokers would be responsible for sale and redemption of units
November, 10th 2010

Giving relief to mutual fund houses, the market regulator SEBI on Tuesday said brokers would be responsible for sale and redemption of units being bought by investors from the secondary market.

"Payment of redemption proceeds to the broker/clearing members by MF/AMC shall discharge MF/AMC of its obligation of payment to individual investor," Sebi said in a circular.

Till now asset management companies had to communicate with the investors regarding the redemption amount as also for the allotment of units to individual investors.

"Similarly, in case of purchase of units, crediting units into broker/clearing member pool account shall discharge MF/AMC of its obligation to allot units to individual investor," Sebi said.

The market regulator has also permitted MF investors to trade through the clearing members of the stock exchanges.

"In order to provide more avenues for purchasing and redeeming ... mutual funds schemes may be permitted to be transacted through clearing members of the registered Stock Exchanges," the circular added.

The Sebi directive would relieve the fund houses of the tedious work of dealing with each and every investors and transfer the job to the stock brokers and clearing members.

In November 2009, Sebi had permitted the buying and selling of mutual funds through stock brokers.

"Now the MFs are free of the tedious work of dealing with the investors separately. This will act as a relief to the asset management companies," SMC Global Securities Strategist & Head of Research Jagannadham Thunuguntla said.

Further, the market regulator has also permited the depositary participants of registered depositories to process the redemption request of units held in demat form.

Currently there are two depositories in the country -- National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions