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    Investors can now hold their mutual fund units in dematerialized form by opening a demat account. To convert existing mutual fund units into a demat account, investors must fill out a conversion request form (CRF) or destatementisation request form (DRF) provided by their depository participant (DP). The completed form along with a statement of account showing the unit holdings must be submitted to the DP. The DP will then verify and forward the request to the registrar and transfer agent to confirm the unit details before crediting the demat account. Key details like the mutual fund's International Security Identification Number and unit holdings must match between the form and statement of account. Once dematerialized, investors can only trans

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    Investors can now hold their mutual fund units in dematerialized form by opening a demat account. To convert existing mutual fund units into a demat account, investors must fill out a conversion request form (CRF) or destatementisation request form (DRF) provided by their depository participant (DP). The completed form along with a statement of account showing the unit holdings must be submitted to the DP. The DP will then verify and forward the request to the registrar and transfer agent to confirm the unit details before crediting the demat account. Key details like the mutual fund's International Security Identification Number and unit holdings must match between the form and statement of account. Once dematerialized, investors can only trans

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    24 views1 page

    Demat

    Uploaded by

    rashmineog
    Investors can now hold their mutual fund units in dematerialized form by opening a demat account. To convert existing mutual fund units into a demat account, investors must fill out a conversion request form (CRF) or destatementisation request form (DRF) provided by their depository participant (DP). The completed form along with a statement of account showing the unit holdings must be submitted to the DP. The DP will then verify and forward the request to the registrar and transfer agent to confirm the unit details before crediting the demat account. Key details like the mutual fund's International Security Identification Number and unit holdings must match between the form and statement of account. Once dematerialized, investors can only trans

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
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    Holding mutual funds in a demat account

    investors can now hold their mutual fund units in dematerialised form. Investor who own a demat
    account can use it to hold mutual fund units. It is however not mandatory to convert units into demat
    form. Investors can also use the electronic platforms of stock exchanges to transact in their mutual
    fund units through the brokers of the stock exchange. 

    For this, investors have to use a standard form specified by the depository (CDSL or NSDL) called the
    conversion request form ( CRF )) or destatementisation request form (DRF). This form is available
    with the depository participant (DP). The completed form, along with the statement of account (SoA)
    which shows the unit holdings of the investor, has to be submitted to the DP. The DP will verify and
    forward it to the registrar and transfer agent, who in turn will confirm the details of units held in the
    SoA. Units will be credited to the demat account after this confirmation. 

    1. ISIN: Each mutual fund is assigned an ISIN ( International Security Identification Number )). It can
    be obtained from NSDL or CSDL and has to be included in the CRF/DRF. 

    2. Details: The details of each scheme with respect to scheme name, ISIN and number of units held
    should be correctly mentioned in the CRF/DRF and should tally with the SoA being attached. 

    3. Holding Pattern 
    The holding pattern of the mutual fund folios and that of the demat account should be the same, and
    in the same order. 

    4. Free & Lock-in Units 


    Mutual fund units such as those of tax-saving schemes may be subject to lock-in. Different forms have
    to be used for free and locked-in units of the same scheme even if held under the same folio. 

    Points to note 
    Signatures: The CRF/DRF has to be signed by all the unit holders of the folio, irrespective of the
    mode of operation of the folio. 

    Transacting with the mutual fund: Once units are dematerialised, investors cannot transact in them
    directly with the mutual fund or investor service centres. Transactions are routed through the stock
    exchange platform or through the DP. 

    Re-materialsation of units: Investors can also make an application for re-materialisation of the
    dematerialised units and only then transact with the mutual fund.

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