The two schemes will be merged and Edelweiss Nifty Large Midcap 250 Index Fund will be the surviving scheme. The merger will be treated as a change in fundamental attributes of the merging scheme and surviving scheme.
The merger shall be effective from August 7, 2023. From the Effective Date, the merging scheme will cease to exist and the unit holders of the merging scheme will become unit holders of the surviving scheme in the designated plans/options. Further, no fresh subscription will be accepted in the merging scheme which is Edelweiss ETF – Nifty Bank with effect from July 6, 2023.
Merging scheme will be delisted two business days prior to the closure of the exit option period for which necessary circulars will be issued by the exchanges and all the existing unit holders of merging scheme and surviving scheme, who do not agree with the proposed merger, will be given an option to exit i.e. redeem their units (fully or partly) or switch to other scheme(s) of the fund house at the applicable NAV of the scheme without any exit load for a period of 30 days starting from July 6, 2023 till August 4 , 2023 (both days inclusive).
Unit holders who do not exercise the exit option on or before August 4, 2023 would be deemed to have consented to the proposed merger and will be allotted units under Direct Plan – Growth option of the surviving scheme as on the close of business hours on effective date. The units allotted to the unit holders in the surviving scheme shall be treated as fresh subscriptions in the surviving scheme.
As per section 47(xviii) of the Income-tax Act, 1961, allotment of units in surviving scheme, pursuant to merger, to unit holders of merging scheme who decide to continue will not be considered as redemption of units in merging scheme and will not result in any capital gain / loss in the hands of the unit holders.The fund house also stated that the offer to exit is purely optional and not compulsory. If the unit holder has no objection to the aforesaid merger, no action is required to be taken and it would be deemed that such unit holder has consented to the merger of the scheme.
