Redemption Frequency, Notice Period and Listing
How and when money can be taken out of a SIF strategy: the structures permitted, the redemption frequencies the framework names, the notice period of up to 15 working days, and the listing of close-ended and interval strategies.
Structure and frequency
A SIF strategy may be open-ended, close-ended or an interval strategy, and redemption may be daily, weekly, fortnightly, monthly, quarterly, annual, at fixed maturity or at another suitable interval.
The framework names daily redemption for equity-oriented strategies, weekly for debt-oriented strategies and twice a week for hybrid strategies, or a lesser frequency that the AMC decides and discloses. The frequency that applies to a strategy is therefore the one its AMC has disclosed, which may be less frequent than the one named for its group.
The notice period
An AMC may also set a redemption notice period of at most 15 working days. Where one applies, the investor receives the NAV at the end of the notice period, not the NAV on the day the request is made.
The NAV can rise or fall during the notice period, and that change is borne by the investor. Notice periods of 30 to 90 days are not permitted under the framework.
Payout and exit load
The framework sets no separate payout timeline for SIFs; the mutual fund rule is that redemption proceeds are paid within 3 working days. This lesson does not go into how that period is counted where a notice period applies. Any exit load is the one disclosed for the strategy, within the mutual fund ceiling of 3% of NAV.
Listing
Units of close-ended and interval strategies must be listed on a stock exchange, to give investors an exit route. A strategy that offers subscription or redemption less often than daily counts as an interval strategy. So debt-oriented strategies redeeming weekly and hybrid strategies redeeming twice a week are interval strategies, and their units must be listed.
On an exchange the investor sells to another investor at the traded price. Trading volumes may be thin, so a listing does not assure a ready buyer or a particular price.
What it adds up to
Money in a SIF may not be available at once, and the NAV can fall while an investor waits. This is the liquidity risk named in the mandatory warning: investments in a SIF involve relatively higher risk including potential loss of capital, liquidity risk and market volatility.
Rules at a glance
The NAV during a notice period
- Assumptions for this example: a strategy has a redemption notice period of 15 working days. Deepa asks to redeem 1,00,000 units, her entire holding in the strategy. The NAV is ₹12.00 on the day of her request and ₹11.40 at the end of the notice period. Exit load and tax are ignored.
- Value at the request-day NAV, for comparison only: 1,00,000 × ₹12.00 = ₹12,00,000.
- NAV that applies: the NAV at the end of the notice period, ₹11.40. Redemption value = 1,00,000 × ₹11.40 = ₹11,40,000.
- Difference: ₹12,00,000 − ₹11,40,000 = ₹60,000, which is 5% of ₹12,00,000.
Result. Deepa receives ₹11,40,000 before any exit load and tax, ₹60,000 less than the value on the day she asked. Had the NAV instead risen to ₹12.60, she would have received 1,00,000 × ₹12.60 = ₹12,60,000. The NAV figures are assumptions for arithmetic, not forecasts.
Key points
- Strategies may be open-ended, close-ended or interval, with redemption at intervals ranging from daily to fixed maturity.
- Frequency named by group: equity-oriented daily, debt-oriented weekly, hybrid twice a week, or a lesser frequency the AMC decides and discloses.
- A redemption notice period, if set, cannot exceed 15 working days; the investor gets the NAV at the end of the notice period.
- Units of close-ended and interval strategies must be listed on a stock exchange; trading volumes may be thin.
Common misunderstandings
- Daily, weekly and twice-weekly are not assured frequencies: an AMC may decide a lesser frequency and disclose it.
- With a notice period, the NAV is not fixed on the day of the request: the NAV at the end of the notice period applies.
- A stock-exchange listing does not assure a buyer or a price: trading volumes may be thin.
Questions people ask
What is the longest redemption notice period an AMC may set?
15 working days.
Which strategies must list their units?
Close-ended and interval strategies. A strategy whose subscription or redemption is less often than daily counts as an interval strategy, so debt-oriented strategies redeeming weekly and hybrid strategies redeeming twice a week must list their units.
Can selling listed units affect the ₹10 lakh threshold?
Yes. A sale on the exchange that takes the holding below ₹10 lakh is the investor's own transaction, an active breach: the units are frozen, 30 calendar days' notice is given, and the units are redeemed automatically if the shortfall remains.
What this lesson relies on
- SEBI Master Circular for Mutual Funds, 20 March 2026, Chapter 21 (Specialized Investment Funds)
- SEBI Master Circular for Mutual Funds, 20 March 2026 (redemption proceeds within 3 working days)
- SEBI (Mutual Funds) Regulations, 2026 (exit load ceiling)
This lesson was reviewed independently against these sources on 8 October 2026. Rules change: check the current regulation, scheme document or policy wording before relying on any figure. This is education, not advice.