Become GST Expert

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Transferability of Mutual Fund units

 Notice Date : 18 August 2010

 Transferability of Mutual Fund units






August 18, 2010


All Mutual Funds/Asset Management Companies/Trustee Companies/Boards of Trustees of Mutual Funds/All registered Stock Exchanges/NSDL/CDSL/All registered Registrars and Share transfer Agents/AMFI




Sub: Transferability of Mutual Fund units


1. Regulation 37(1) of SEBI (Mutual Fund) Regulations, 1996 states that “a unit unless otherwise restricted or prohibited under the scheme, shall be freely transferable by act of parties or by operation of law.”The spirit and intention of this regulation is not to prohibit transferability of units as a general rule or practice. However, it is noticed that mutual fund schemes prohibit transfer on a regular basis instead of on an exceptional basis.


2. In order to facilitate transferability of units of mutual funds held in one demat account to another demat account, it has been decided that all AMCs shall clarify by way of an addendum that units of all mutual fund schemes held in demat form shall be freely transferable from the date of the issue of said addendum which shall be not later than October 1, 2010. However, restrictions on transfer of units of ELSS schemes during the lock-in period shall continue to be applicable as per the ELSS Guidelines.


3. This circular is issued in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulation 77 of SEBI (Mutual Funds) Regulations, 1996 to protect the interests of Investors in securities and to promote the development of and to regulate the securities market.


Yours faithfully,


Chief General Manager

Tel no. 022-26449340




on 19 August 2010
Notification No : CIR/IMD/DF/10/2010
Published in Shares & Stock
Source : ,

Submit Notifications
GST Course
caclubindia books caclubindia books