SEBI has asked Sahara Mutual Fund to wind up its mutual funds business by April 21.
However, the fund house can run its ELSS Sahara Tax Saving Gain Fund for four more months as such funds come with a lock-in period of three years.
The fund house will have to return the money of all unit-holders by August 27. This means, Sahara MF will have to compulsorily redeem the units allotted to its investors and credit the respective funds to its investors without any additional cost, within the given date. SEBI clarified that the fund house cannot accept fresh business during this period.
SEBI has directed its R&T Karvy Computershare to ensure the redemption proceeds of all unit holders reaches before the stipulated date. “The Trustees of Sahara MF and the Registrar and Transfer Agent, Karvy Computershare are directed to ensure that contact details and the bank details of all the investors of Sahara Tax Saving Gain Fund are updated so that redemption proceeds can be sent to the investors without any delay,” instructed SEBI.
Sahara MF will surrender its certificate of registration to SEBI by August 27.
The fund house manages AUM of Rs.64 crore as on March 2018.