Demat accounts are utilized for share purchase and sale. Even bonds are now issued through demat account. However, for mutual funds, the demat facilities was not there . Because of this accounting of mutual funs are done by investor separately through mutual fund statements .
Now the investors can have all the mutual funds units credited and debited through his or her demat accounts. Not only that the purchase and sale can also take palce through broker and online. The transactions in mutual fund s are now at par with the shares. SO here is how , one can convert or buy and sale the mutual fund s through demat accounts
NSDL has enabled holding of mutual fund units represented by Statement of Account in dematerialized form for its demat account holders. You can use your existing demat accounts for converting your mutual fund units in dematerialised form.
How to convert existing holdings in mutual fund units ?
- Obtain Conversion Request Form (CRF) from your DP.
- Fill-up the CRF.
- Submit the CRF along with the Statement of Account to your DP.
- After due verification, the DP would sent the CRF and Statement of Account to the Asset Management Company (AMC) / Registrar and Transfer Agent (RTA).
- The AMC / RTA will after due verification confirm the conversion request sent by your DP and credit the mutual fund units in your demat account.
Can you subscribe mutual fund through your broker ?
Yes, you can subscribe for mutual fund units through your Stock Broker using the Stock Exchange platform. Upon subscription, the AMC / RTA will credit the mutual fund units to your demat account.
How to make Redemption ?
You can redeem your mutual fund units held in dematerialized form through two different modes i.e., through your DP or stock broker.
- Obtain Redemption or Repurchase Request Form (RF) from your DP.
- After due verification, your DP will send the RF to the AMC / RTA.
- The AMC / RTA will verify the form and confirm the redemption request and make the payment as per your bank account details available in the depository system.
Place your order through your Stock Broker using the stock exchange platform. You will be required to submit delivery instruction slip (DIS) to your DP to transfer the mutual fund units to a designated Pool account of the Clearing Corporation (CC) of the stock exchange.
The designated Pool accounts are given below:
Stock Exchange Name
CM BP ID
National Stock Exchange
12 (Mutual Fund)
4.30 PM on Trade day (Order Day)
Bombay Stock Exchange Limited
02 (Mutual Fund)
The redemption proceeds will be paid by AMC / RTA as per your bank account details available in the depository system.