Mutual funds stalling redemptions…

When you went to redeem your units did you get a feeling that they were trying to stall your redemption?

3 mails which I had received made me sit up and think. Is there a pattern, I am not sure. However even when i have attempted redemption I have got the following reactions:

– You will have to get the signature of ALL the holders (holding Either or Survivor)

– for a change in bank account number you have to give us a separate letter. – this is particularly surprising because they have a form which says if there is a change in the bank account please fill in this form.

– signature difference (ho ha  – have been using this signature for a very long time)

– Cannot do a direct credit because the bank is not in Core banking. Will courier the cheque.

Not sure which of these excuses are genuine – some look genuine. However most of these ‘impediments’ are by a couple of mutual funds who are not sure why money is leaving them. Whether this is an attempt to delay am not sure.

Would be happy to get feedback on this…your feelings are important 🙂

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21 Responses to “Mutual funds stalling redemptions…”

  1. not being KYC compliant, you can still invest..but not redeem. What an idea sir ji!

  2. subra,
    if you have proof that the request was on E/S mode & they made a mistake, you can go to sebi. justice will be delayed, but not denied. the problem is that most investors are unaware or unwilling to pursue escalation mechanisms…

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