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How to convert Mutual Funds into Dematerialized form June 07 2021Mutual Funds, Demat account, CDSL, NSDL

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How to Convert your Mutual Fund in Demat form ?

Mutual fund units can be held in the same demat account that you use to purchase and sell shares. It means you may buy and sell mutual fund units electronically and keep track of all of your capital market investments in single statement.

By submitting a conversion request form which you can get from your broker or depository, (NSDL or CDSL) you can convert mutual fund units into demat form.

The depository will transmit the paperwork to the asset management company or its registrar and transfer agent, or RTA, after verification, which will confirm the conversion request. All subscriptions and redemptions will have to go through the broker after the conversion. On the stock exchange platform, the broker will purchase units and credit them to your demat account.

A depository is a financial institution that acts as a safekeeper of securities and settles transactions between parties in the capital market. An RTA processes mutual fund unitholders'' application forms, redemption requests, and account statements.

Advantages of holding 

Mutual Funds in demat account

·Paperless transactions.

·In a single demat account, you can own stock, debt instruments, government securities, and mutual fund units.

·Your DP will provide you a single transaction statement that lists all of the stocks and Mutual Fund Units in your demat account.

· All companies / Asset Management Company (AMC) / Registrar and Transfer Agent (RTA) in which you hold shares / Mutual Fund Units will electronically register your change of address with DP. As a result, there will be no need to communicate with each of them separately.

·Through a single internet login, you can access the most recent balances and transactions in your demat account.

How to redeem Mutual Funds from demat form

· You have two options for redeeming your dematerialized Mutual Fund Units: through your DP or through a stock broker.

· You can submit a redemption request form to the depository, which will then transmit the request to the fund house and its RTA after verification.

Additional benefits when you hold MF units in demat form

· The nomination in a demat account will apply to Mutual Fund Units held in that demat account as well.

Except for tax-saving funds, which have a three-year lock-in, units can be freely transferred to nominees or legal heirs'' accounts.

Open demat account with Indira Securities and start your trading journey with the best full-service providing brokerage firm in Central India.

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on by today EOD."

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201




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