Redemption on WebNotes

SGB premature redemption window

Wed, 20 May 2026 00:00:00 +0000

SGB premature redemption opens from the 5th year onwards, on coupon payment dates only:

When	What
Years 1-5	No premature exit (apart from secondary market sale)
Years 5-8	Premature redemption on coupon dates only
Year 8 (maturity)	Automatic redemption

How to redeem prematurely

Submit request 30 days before the desired coupon date.
RBI redeems at the average gold price of last 3 days before payment.
Funds credited to your linked bank.

Alternative: secondary market sale

Before 5 years, sell on NSE/BSE secondary market at then-prevailing price. Tax treatment differs from premature redemption.

How to redeem during mutual fund suspension

Tue, 19 May 2026 00:00:00 +0000

MF suspension is rare but high-stress. SEBI’s framework requires monetisation and payout to investors. Patience required; capital usually recovered over time.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned.

Market-risk disclaimer. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Suspension scenarios may result in partial loss of capital.

How to redeem PPFAS units via SelfInvest

Sun, 17 May 2026 00:00:00 +0000

A redemption order from a PPFAS scheme is the standard exit mechanism, and the SelfInvest flow itself is short. What varies, and matters more than the click sequence, is what redemption costs in any given scheme. PPFCF has a tiered exit load on units held less than two years; the Liquid Fund has the seven-day sliding exit load; ELSS units are not redeemable at all until the per-installment three-year lock-in clears; Arbitrage has no exit load. On top of which is the capital-gains tax: equity-oriented schemes use Section 112A LTCG and Section 111A STCG after Finance Act 2024; debt schemes acquired on or after 1 April 2023 are taxed at slab rate regardless of holding period. The order itself is irreversible once cut-off NAV applies.

Exit load in mutual funds

Tue, 12 May 2026 00:00:00 +0000

Exit load is a fee charged by a mutual fund to an investor upon redemption of units before a specified minimum holding period has elapsed. It is expressed as a percentage of the redemption amount or the applicable NAV, and it is deducted from the redemption proceeds before the net amount is paid to the investor. Exit loads serve two purposes: they deter short-term redemptions that destabilise the fund’s portfolio and impose transaction costs on remaining unitholders, and they provide a modest income to the scheme that partially offsets redemption-related costs.

How to redeem a mutual fund on Coin

Tue, 12 May 2026 00:00:00 +0000

Mutual fund units held on Zerodha Coin are in demat form in your CDSL account. Redeeming them requires a CDSL authorisation step that is unique to demat-held units and does not apply to statement-of-account (SOA) folios. This guide walks through the complete redemption process on Coin, including cut-off time rules and payout timelines.

Prerequisites

An active Zerodha trading and demat account with complete KYC.
Mutual fund units already held in your Coin portfolio.
CDSL TPIN set up, or access to the mobile number registered with CDSL for OTP authorisation. Set up the TPIN at cdsl.com if not already done.
TOTP authenticator for Zerodha two-factor login.

Regulatory framework for redemptions

Under the SEBI (Mutual Funds) Regulations, 1996, AMCs are obligated to honour redemption requests from investors at the applicable NAV. SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2019/137 (November 2019) governs mutual fund units held in demat form. When units are in demat form, the depository participant (Zerodha, through CDSL) must authorise the transfer of units to the AMC before the redemption can be processed. This is handled through CDSL’s TPIN or OTP mechanism, which serves as an electronic equivalent of a delivery instruction slip (DIS).

Settlement cycles for mutual fund transactions (T+1/T+2/T+3)

Tue, 12 May 2026 00:00:00 +0000

Settlement cycles for mutual fund transactions refer to the number of business days within which redemption proceeds or allotment confirmations must be delivered to investors following a transaction. In India, SEBI prescribes separate settlement timelines for different types of mutual fund schemes, with faster settlement for liquid and overnight funds (which invest in very short-duration, highly liquid instruments) and longer timelines for equity and debt funds.

Settlement in mutual funds is primarily relevant to redemptions (the payment of redemption proceeds to the investor’s bank account) and unit allotments (confirmation that purchased units have been credited). Unlike equity market settlement, where a central counterparty (NSE Clearing or ICCL) nets and settles trades, mutual fund settlement occurs directly between the AMC/RTA and the investor’s bank.