Comment on the following in light of SEBI (Collective Investment Schemes) Regulations, 1999: (iv) What is the penal interest payable by the person registered under a Collective Investment Scheme on his failure to refund

If a Collective Investment Scheme (CIS) fails to receive the minimum subscription amount, the Collective Investment Management Company must refund the application money to the applicants. In the event of failure to refund the amounts within the specified period (which is typically within five working days from the closure of the subscription list), the Collective Investment Management Company shall pay interest to the applicants at a rate of 15% per annum from the expiry of five working days from the date of closure of the subscription list.