Holding Mutual Fund Units in demat account FAQ

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What is the meaning of conversion of mutual fund units (represented by Statement of Account) into demat form?

If you are holding mutual fund units in physical form, which are represented by Statement of Account (SOA) and you want to hold them in demat form, you may do so by submitting a request in prescribed form to your DP. This is known as conversion of mutual fund units in demat form.

In case I do not have a demat account, what should I do?

In case you do not have a demat account and wish to convert your mutual fund investments in demat form, you need to open a demat account with any NSDL DP.

What are the advantages of holding mutual fund units in demat form?

a. You receive a single consolidated account statement, which mentions all your investments in various securities including mutual fund units. You need not look at different statement received from mutual funds companies. b. Change in address recorded in your demat account gets registered with all the concerned issuer companies and mutual fund companies / Registrar and Transfer Agent (RTA). Thus, eliminating the need to correspond with each of them separately. c. By using facilities like IDeAS and NSDL Mobile App, you can monitor transactions and holdings in an extremely fast and efficient manner. d. You receive SMS alerts upon debit of mutual fund units from your demat account. e. You may opt for online redemption of mutual fund units by subscribing to SPEED-e facility.

What is the procedure for converting mutual fund units (represented by Statement of Account) into demat form?

You need to submit a duly filled in Conversion Request Form (CRF) to your DP along with the Statement of Account. After necessary checks, your DP will forward your request to concerned AMC / its Registrar. Upon confirmation from AMC / Registrar, mutual fund units will be credited in your demat account.

Can Non Resident Indians (NRIs) convert the mutual fund units held under NRI status into demat form?

Yes, provided demat account is opened under NRI status.

How can I subscribe for mutual fund units through stock exchange platform?

You need to simply give a subscription order to your stockbroker along with the required amount. Your broker will enter the request on the platform of stock exchange. Upon receipt of units from AMC / Registrar on the payout day, your broker / clearing corporation will arrange to credit of desired mutual fund units in your demat account.

How do I redeem the mutual fund units held in my demat account?

You may redeem your mutual fund units held in demat form through your DP or Stockbroker. SPEED-e users may submit redemption request online also.

What is the procedure to redeem the mutual fund units held in demat form through my DP?

You need to submit a duly in Redemption Form (RF) to your DP. After necessary checks, your DP will forward your request to concerned AMC / Registrar. After undertaking necessary verifications, redemption amount will be credited to your filled linked bank account directly by AMC / Registrar. You may give redemption request for a specific quantity or all the units or for a desired amount to your DP.

What is the procedure to redeem the mutual fund units held in demat form through stockbroker?

You need to give a redemption order to your stockbroker. In addition, you need to submit Delivery Instruction Slip to your DP to transfer the mutual fund units to the designated CM Pool account of NSE Clearing Limited / Indian Clearing Corporation Limited.

Can I transfer the mutual fund units from one demat account to another demat account?

Yes. You can transfer mutual fund units from your demat account to any other demat account of your choice (held with same or different DP / depository) except for mutual fund units which are under lock-in status for any reason.