- SEBI (SEBI) has asked mutual fund companies to change the name of their Dividend Plan. These include both existing and new schemes. The regulator has also asked fund houses to clearly tell investors that they give some of their capital as dividend. Explain that fund houses offer three types of dividend options. The names of these three are to be changed for each existing scheme with new fund offer (NFO).
- The dividend reinvestment will be named Reinvestment of Income Distribution cum Capital Withdrawal Plan. Dividend Transfer plan will be known as Transfer of Income Distribution cum Capital Withdrawal Plan.
- According to distributors, there have been many cases where equity and hybrid products have been sold by promising to pay regular dividends. Many investors buy such schemes without understanding the risk associated with the product. Fund houses do not pay the dividend when the market falls. Investors also redeem them without thinking that it is part of their capital.
- Mutual fund companies have to ensure that they keep both income distribution and capital distribution separately. Income distribution is the increase in net asset value ie NAV. It is important to state both types of distribution in the consolidated account statement to the asset management companies.
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Dr. Viibhor Agarwal has a Ph.D. in IPR, start-ups, and corporate law, as well as an MBA in finance from NMIMS Mumbai, and achieved numerous certifications in corporate law. He is a practicing corporate lawyer and the founder of two business verticals. He has advised over 2000 businesses, 5000 students, and 400 new start-ups all over India and other countries like Dubai, London, the USA, and Qatar. Dr. Viibhor Agarwal assists people with business expansion and branding, regardless of size, as well as business setup, financial literacy, start-up guidance, licensing, tax planning, and other legal compliance issues. Dr. Viibhor Agarwal’s goal is to provide complete financial and business literacy to all businessmen who want to start new businesses and grow existing businesses and to those students who want to open their start-ups. In each video, Dr. Viibhor Agarwal not only explains the method of the solution but also advises subscribers on practical tips learned from and faced by clients handled by Dr. Viibhor Agarwal daily. This blog portal provides you with an easy and clear solution to your business problem, allowing you to take your business to the next level.