In case of dividend reinvestment plans in ELSS, each unit allotted during a dividend declaration carries a 3 year lock-in period
09-Apr-2015 •Research Desk
I have invested in dividend re investment of ELSS fund. How can I redeem all the units?
- Satyaprakash Mishra
You can redeem them through a redemption request if all your units have completed a 3 year lock in. But in the case of Dividend Reinvestment plans in ELSS, do note that each unit allotted to you during a dividend declaration carries a 3 year lock in period. These units can only be redeemed once the lock-in is done.
Recently, SEBI has asked all AMCs to discontinue dividend reinvestment option under ELSS schemes to avoid confusion. After this, all the investors will be automatically shifted to dividend payout option. Your older units from dividend reinvestment however will still carry the 3 year lock in.
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