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.
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
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.
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
of holding Mutual Funds in demat account
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.
redeem Mutual Funds from demat form
You have two options for redeeming
your dematerialized Mutual Fund Units: through your DP or through a stock
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.
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.
for tax-saving funds, which have a three-year lock-in, units can be freely
transferred to nominees or legal heirs'' accounts.