AMCs paid Rs
66 lakh as penalty interest to investors for delay in dividend and redemption
dispatches compared to Rs 33 lakh in FY11.
The
interest penalties paid by AMCs to investors for delay in redemption and
dividend proceeds dispatches went up sharply in FY12, according to SEBI.
In
FY12, AMCs paid Rs 66 lakh to 2285 investors as penalty interest compared to Rs
33 lakh paid to 5548 investors in FY11.
In
FY12, AMCs paid Rs 13.37 lakh to 727 investors for delay in giving dividend
proceeds compared to Rs 10 lakh paid to 2573 investors in FY11. For delay in
dispatch of redemption proceeds, AMCs paid Rs 52.41 lakh to 1558 investors in
FY12 compared to Rs 23.38 lakh paid to 2975 investors in in FY11.
SEBI
rules require AMCs to pay 15 % per annum interest to investors for delays and
failure to dispatch redemption and dividend proceeds to investors.
Fund
officials say that a majority of errors happen while filing out the application
form or error in processing the data. “There is no intention to delay dividend
or redemption proceeds. These are either manual or system errors. There are
many operational reasons due to which these errors take place. Majority of the
complaints are resolved in 30 days,” says an operations head of a bank
sponsored AMC.
Mutual funds are required to
report these cases of delay to SEBI every two months.
Also read: MFs prompt in redressing investor complaints
