Five things to know about signature mismatch at redemption

1. When a mutual fund investor makes a redemption request, his signature in the application must match that in the mutual fund records. If not, the redemption will not be processed.

2. In case of signature mismatch, the investor needs to submit the new signature with attestation from the bank in a specific format.

3. The signature must be verified by the bank manager, along with his name and employee number, under the seal of the bank branch.

4. The redemption will be processed at the prevailing NAV after the new signature has been verified and uploaded.

5. If the signature has changed over time, the new signature can be notified to the mutual fund by the investor to avoid signature mismatch at the time of redemption.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.)