Hello ji, I join on a third party payroll in March 23, for a renowned IT firm, and in later on this IT firm offered me and i joined in Sep 23. During Background verification post join, they objected my prior to prior employment, which had an joining date overlap and considered it a Moonlight case. That i clarified them with scenario, but finally they terminated. IT firm issued me a show cause notice for this, which i even replied on next day, but termination reason they mentioned that 'given an opportunity to provide a written response in relation to the Allegations, which you elected not to do', but this is not true. When i objected and i get reply that "Even basis whatever is submitted, your case has not cleared. Decision stands final" Kindly suggest if can i file a case in court for this action or it doesn't have much legal base. Thanks

Ans: Hello;

If a mutual fund company gets sold or fails, the process is prescribed by SEBI:

In case MF company is Sold,
The new fund house may:
1. Continue the scheme with a new name and management.

2. Merge the scheme with similar funds and offer investors the option to exit without any exit load.

In case MF company shuts down,
The fund house will:
1. Pay out investors based on the fund's last recorded Net Asset Value (NAV) and the number of units the investor holds, after deducting expenses.

2. If the company is not in a position to do so then SEBI may liquidate the funds assets and distribute the proceeds to unit holders.

It is also pertinent to note that mutual fund regulation in India is one of the most stringent and hence best, from investor's point of view, globally.

This is not just in theory. We have seen how the Franklin Templeton abrupt closure of debt funds was handled with surgical precision, by SEBI, with no loss to unitholders.


Skin in the game regulation mandates that 20% salary of key mutual fund personnel and fund managers is paid in terms of units of their funds with a 3 year lock-in.

The stocks and bonds purchased by the AMC for the fund are held by a custodian, appointed by the trust that administers the fund.

The trust engages into a investment management agreement with the AMC for managing the fund as per their mandate and within regulatory guidelines.

Registrar and Transfer Agents handle the investor registration,kyc, maintaining records, providing account and tax statements etc.

Happy Investing;
X: @mars_invest