SEBI mandate, the account holder's bank account and bank details have to be printed on the redemption cheques, to prevent fraudulent encashment. PAN card is compulsory for all redemption transactions.
Redemption cheques drawn are payable to the first holder in a folio.
If the investor redeems units purchased on multiple dates, redemption will be made on a first-in-first-out basis.
Redemption proceeds have to be paid within 10 working days of receiving the request. Delays attract a 15 percent p.a. penal interest to be paid by the AMC.
Instant Access Facility (IAF) helps credit of redemption proceeds in the bank account of the investor on the same day of redemption request, subject to prescribed limits. IAF is offered for Liquid schemes of the mutual funds for resident individual investors only.