Brokers are responsible for redemption of MF units: Sebi

  “Payment of redemption proceeds to the broker/clearing members by MF/AMC shall discharge MF/AMC of its obligation of payment to individual investor,” Sebi said . Till now asset management companies had to communicate with the investors regarding the redemption amount as also for the allotment of units to individual investors. “Similarly, in case of purchase of units, crediting units into broker/clearing member pool account shall discharge MF/AMC of its obligation to allot units to individual investor,” Sebi said. It has also permitted MF investors to trade through the clearing members of the stock exchanges.

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