When a mutual fund redemption is processed, the fund must calculate the Net Asset Value per Share (NAVPS) to determine the redemption price. The Canadian Securities Administrators (CSA) regulations mandate that payment for redeemed securities be made within two business days following the calculation of NAVPS, ensuring prompt transactions while protecting investor interests.
[References:, CSC Volume 2, Chapter 17: "Mutual Funds: Structure and Regulation," details the process and timing for mutual fund redemptions, including regulatory requirements., ]
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