AMCs Allow Redemption Proceeds For Yes Bank Holders To Some Other Bank A/c

After the Yes Bank's debacle came to light, there is everybody from RBI to finance ministry to government assuring investors and account holders safety of their money.

Even AMCs or asset management companies have come in rescuing the interest of mutual fund investors who are looking to redeem their mutual fund investments as those investors with Yes Bank account have been given a leeway to take the pay-out of the redemption proceeds to some bank account other than with Yes Bank.

"If clients want to change their Redemption bank account mandate from Yes Bank to any other bank they can send a request to [email protected]. We shall process the request for tomorrow's redemptions so that their money isn't blocked," said Nilesh Shah, MD, Kotak Mahindra AMC in a Tweet on Thursday night.

So, some of the AMCs have even considered to held back the pay-out proceeds in respect of mutual funds due for redemption on March 6, 2020 such that they can change their bank account.

Other than redemption proceeds, for the dividend also investors have been given a window to change their account. Also, at the same time intermediaries and RTAs have been advising to stop accepting investments via Yes Bank instruments.

Also, CAMS after the RBI's moratorium on Yes Bank has asked CAMS for holding March 6, 2020 redemption payouts due to account holders of Yes Bank.

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