Redemption & Refund Terms
How subscription payments are treated, when amounts are returned, and how redemption differs from a refund. These terms form part of, and are to be read with, our Terms & Conditions.
Monarch Networth Asset Management Private Limited – CIN U66301MH2025PTC455601 – Supplementary to the Terms & Conditions
1. Nature of a subscription
A subscription to a scheme of Monarch Mutual Fund is an investment and not the purchase of a good or a service. Units are allotted at the applicable Net Asset Value determined in accordance with the Scheme Information Document and the SEBI (Mutual Funds) Regulations, 1996. A subscription once processed and units once allotted cannot be cancelled or returned at the price paid; the unitholder may redeem the units in accordance with the terms of the scheme.
2. Cancellation of a request
A subscription request may be withdrawn only where the request to withdraw is received before the applicable cut-off time on the day on which the application would otherwise be processed, and before units are allotted.
3. Refund of subscription amounts
The subscription amount is returned in full, without deduction, to the applicant’s bank account where the application is rejected as invalid or incomplete or as not being in accordance with the terms of the Scheme Information Document; where the payment fails, is reversed or is not realised in the scheme’s bank account; where the payment is duplicated or exceeds the amount applied for, to the extent of the excess; where, during a New Fund Offer, the scheme does not collect the minimum subscription amount stated in the Scheme Information Document; and in respect of amounts representing fractional units, where applicable.
4. Timelines and interest on refunds
Refunds in respect of a New Fund Offer are made within five Business Days of the closure of the New Fund Offer. Where a refund is delayed beyond this period, interest at 15% per annum is payable by the AMC for the period of the delay, in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the SEBI Master Circular for Mutual Funds dated March 20, 2026. Refunds arising from failed, duplicate or excess payments are processed within the timelines prescribed by the relevant payment system.
5. Mode of refund
All refunds are credited only to the bank account from which the payment originated or to a bank account registered in the unitholder’s folio. Refunds are not made in cash, to third-party accounts, or by any mode other than direct credit to a verified bank account. Bank or collection charges, if any, are borne by the applicant. The AMC does not levy any charge for processing a refund.
6. Redemption is not a refund
Where units have been allotted, a unitholder exits a scheme by redemption and not by refund. Redemption proceeds are computed at the applicable Net Asset Value on the date of the valid redemption request, net of exit load and applicable statutory levies, and may be higher or lower than the amount originally invested. Redemption proceeds are dispatched within three working days of a valid redemption request, failing which interest at 15% per annum is payable for the period of the delay.
7. Precedence of scheme documents
Clauses above are to be read with the Scheme Information Document, Key Information Memorandum and Statement of Additional Information of the relevant scheme. In the event of any inconsistency, the scheme documents and the SEBI (Mutual Funds) Regulations, 1996 prevail.