ALLOTMENT OF UNITS AND REFUNDS OF MONEYS :

• Regulation 35 lays down that the Asset Management Company shall specify in the offer document:

(a) the minimum subscription amount it seeks to raise under the scheme; and

(b) in case of oversubscription the extent of subscription it may retain . However, where the asset management company retains the oversubscription, all the applicants applying up to five thousand units shall be given full allotment subject to the oversubscription mentioned in clause (b).

• The mutual fund and Asset Management Company shall be liable to refund the application money to the applicants:

(i) if the mutual fund fails to receive the minimum subscription amount ;

(ii) if the moneys received from the applicants for units are in excess of subscription .

• Any amount refundable shall be refunded within a period of five working days from the date of closure of subscription list, by Registered post with acknowledgement due and by cheque or demand draft marked “A/c payee” to the applicants. However, in case of mutual fund schemes eligible under Rajiv Gandhi Equity Savings Scheme, the period shall be fifteen days from the closure of the initial subscription list.

• In the event of failure to refund the amounts within the period specified the asset management company shall be liable to pay interest to the applicants at a rate of fifteen per cent per annum from the expiry of five working days from the date of closure of the subscription list.

• However, in case of mutual fund schemes eligible under Rajiv Gandhi Equity Savings Scheme, the period shall be fifteen days from the closure of the initial subscription list.