Unclaimed Redemption and Dividend
Background
Unclaimed Redemptions or Unclaimed Dividends are those amounts that are processed and released but not encashed by/credited to the bank account of the unitholders of the schemes of HSBC Mutual Fund.
SEBI has allowed investment of such unclaimed amounts in separate plans of Liquid mutual fund schemes. Accordingly the unclaimed amounts under various schemes of HSBC Mutual Fund (the Fund) are invested in HSBC Overnight Fund, under the following 4 separate plans created exclusively for the purposes of investment of unclaimed amounts –
- Unclaimed Dividend below three years
- Unclaimed Dividend above three years
- Unclaimed Redemption below three years
- Unclaimed Redemption above three years
The Total expense ratio of the above plans are capped at 50bps and there is no exit load charged to these plans. The Net Asset Value of these separate plans are calculated and disclosed on a daily basis on the AMFI website. On receipt of a valid claim from the unitholders, the unclaimed amounts are processed and paid out as per the applicable NAV of the relevant unclaimed amount Plan.
Click here to view your Unclaimed Redemption / Dividend details
Click here to download the form for Release of your Unclaimed Amount
Procedure to claim Unclaimed Redemption/Dividend Unitholders can submit their claim request vide submission of the duly completed ‘Release of Unclaimed Amount Form’ at any of the HSBC Asset Management Investor Service Centres or at any of the CAMS Service Centre. The form needs to be duly signed as per the mode of holding. In case of updation of bank details, relevant documents need to be submitted with the duly signed form.
On receipt of the duly completed ‘Release of Unclaimed Amount Form’, the unclaimed amount together with the appreciation on the same will be released post validations being completed by the Fund. Such payments will be made to the unit holder’s registered bank account (fund transfer / cheque dispatch) within 10 business days from receipt of a valid request. A payout confirmation will be sent to the unitholders on the mobile/email registered with the Fund. Additionally an account statement will be sent to the unitholder reflecting the payout of the unclaimed amount along with the appreciation details.
To better understand the Unclaimed Amounts and the claim procedures, please refer the following FAQs
1. What are Unclaimed Redemptions and Unclaimed Dividends?
Answer: Unclaimed Redemptions or Unclaimed Dividends are those amounts that are processed and released by HSBC Mutual Fund (the Fund) but not encashed by/credited to the bank account of the unitholders.
2. How Unclaimed Amounts are managed by HSBC AMC?
Answer: In accordance with SEBI circular dated February 25, 2016, the unclaimed amounts under various schemes of the Fund are invested in the following 4 separate plans of HSBC Overnight Fund, created exclusively for the purposes of investment of unclaimed amounts –
- Unclaimed Dividend below three years
- Unclaimed Dividend above three years
- Unclaimed Redemption below three years
- Unclaimed Redemption above three years
The Total expense ratio of the above plans are capped at 50bps and there is no exit load charged to these plans. The Net Asset Value of these separate plans are calculated and disclosed on a daily basis on the AMFI website-. On receipt of a valid claim from the unitholders, the unclaimed amounts are processed and paid out as per the applicable NAV of the relevant unclaimed amount Plan.
3. What are the Regulatory requirements prescribed for unclaimed amounts?
Answer: SEBI vide its circular SEBI/HO/IMD/DF2/CIR/P/2016/37 dated February 25, 2016 has prescribed the following with respect to unclaimed amounts:
- Unclaimed redemption and dividend amounts to be deployed by the mutual funds in call money market / money market instruments / liquid / money market mutual fund schemes only.
- Investors who claim the unclaimed amounts during a period of 3 years from the due date shall be paid initial unclaimed amount along-with the income earned on its deployment. Investors, who claim these amounts after 3 years, shall be paid initial unclaimed amount along-with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education.
- AMCs shall not be permitted to charge any exit load in this plan and TER (Total Expense Ratio) of such plan shall be capped at 50 bps.
- Mutual Funds shall be required to provide on their website, the list of names and addresses of investors in whose folios there are unclaimed amounts.
- Further, the information on unclaimed amount along-with its prevailing value (based on income earned on deployment of such unclaimed amount), shall be separately disclosed to investors through the periodic statement of accounts / Consolidated Account Statement sent to the investors.
4. How can I ascertain whether I have any unclaimed money lying with any of the schemes of the Fund?
Answer: The data on the unclaimed amount is available on the website https://www.assetmanagement.hsbc.co.in. Any two of the following credentials (listed below) need to be provided to view your unclaimed amount:- PAN/ PEKRN
- Folio Number
- Mobile Number
- Bank Account Number
- Date of Birth
If there is any unclaimed amount in your folio in any scheme of the Fund, the same shall be displayed.
5. How can I claim my unclaimed amount?
Answer: You are required to submit the 'Release of Unclaimed Amount Form' duly filled and signed, available on the below mentioned link: Click here to download the form for Release of your Unclaimed Amount.
The request can be submitted at any of the AMC Investor Service Centre or at any CAMS Service Centre. Such requests need to be duly signed as per the mode of holding. The request will be time stamped, validated and processed as per the following applicable NAV:
| Particulars | Applicable NAV |
|---|---|
| where the claim request form is received unto 3.00 pm | closing NAV of the day of receipt |
| where the claim request form is received after 3.00 pm | closing NAV of the next business day. |
6. What are the additional documents which need to be submitted along with the Form for updation of bank details and release of unclaimed amount?
Answer: Any one of the following documents can be submitted along with the Form for updation of bank details and release of the unclaimed amount, if there is any change in bank account:
- Cancelled Original Cheque leaf with name & account pre-printed
- Bank statement with current entries and not older than 3 months
- Photo copy of Bank Passbook with current entries and not older than 3 months current entries and not older than 3 months
- Letter issued by the bank on the letterhead, duly signed and stamped by the Branch Manager / Authorised Personnel
Note: The above documents should be either in original or self-attested copy with original produced for verification
7. In how many days will my claim request be processed?
Answer: For all valid requests, the Fund shall dispatch/credit the unclaimed amount within 10 Business Days from the date of receipt of the “Release of Unclaimed Amount Form”.
Where the request for release of unclaimed amount is either not clear or requires further investigation, then the same will be processed with the closing NAV of the business day immediately after the date when the Fund has completed the validation/investigation. In such cases the Fund shall dispatch/credit the unclaimed amount within 10 Business Days from completion of the claim validation process.
The AMC reserves the right to seek additional documents to ascertain the rightful owner of the unclaimed amounts.
8. What amount will I receive, when I claim any unclaimed amount?
Answer: In case the unclaimed amount is for a period of less than 3 years from the date of redemption/dividend the payment will be made as follows:
Unclaimed Amount + Appreciation of investment in the relevant unclaimed amount Plan of HSBC Overnight Fund till the date of claim
In case the unclaimed amount is for a period of more than 3 years from the date of redemption/dividend the payment will be made as follows:
Unclaimed Amount + Appreciation of investment in the relevant unclaimed amount Plan of HSBC Overnight Fund up to a period of 3 years from the date of investment
9. Will the unclaimed redemption attract any TDS?
Answer: TDS as applicable will be deducted for all NRI Investor(s).
Additionally, the unitholder can call the contact center on 1800 200 2434 / 1800 4190 9800 or send a mail to investor.line@mutualfunds.hsbc.co.in and request for process or form for claiming the unclaimed amount