REPURCHASE OF CLOSE ENDED SCHEME :
Regulation 33 says that Units of a close ended scheme, other than those of an equity linked savings scheme, shall not be repurchased before the end of maturity period of such scheme.
The units of close ended schemes may be open for sale or redemption at fixed predetermined intervals if the maximum and minimum amount of sale or redemption of the units and the periodicity of such sale or redemption have been disclosed in the offer document.
It also permits conversion of close ended scheme into open ended scheme subject to specified conditions, otherwise a close ended scheme shall be fully redeemed at the end of the maturity period. The conditions which are required to comply for the conversion of close ended scheme into open ended scheme are as follows:-
(a) if the offer document of such scheme discloses the option and the period of such conversion; or
(b) the unit holders are provided with an option to redeem their units in full
(c) the initial issue expenses of the scheme have been amortized fully in accordance with the Tenth Schedule.
A close-ended scheme may be allowed to be rolled over if the purpose, period and other terms of the roll over
and all other material details of the scheme including the likely composition of assets immediately before the roll over, the net assets and net asset value of the scheme, are disclosed to the unitholders and a copy of the same has been filed with SEBI.
Further, such roll over will be permitted only in the case of those unitholders who express their consent in writing
and the unitholders who do not opt for the roll over or have not given written consent shall be allowed to redeem
their holdings in full at net asset value based price.