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Facility for holding Mutual Fund Units in dematerialised form

NSDL has enabled holding of mutual fund units [represented by Statement of Account] in dematerialised form for demat account holders. You can use your existing demat account for holding and converting your mutual fund units in dematerialised form.

How to convert existing investment in mutual fund units to demat form?

If you are holding units of any mutual fund scheme in paper form (or Statement of Account), you may convert them easily in demat form through your DP. If you are already having a demat account, then you need not to open a separate demat account just for this purpose. The procedure for converting mutual funds units held in paper form to demat form is as below -

1. Obtain Conversion Request Form (CRF) from your DP.
2. Fill-up the CRF and sign it. Incase of joint holders, all holders should sign the form.
3. Submit the CRF along-with the Statement of Account to your DP.
4. After due verification, the DP would send the CRF to Asset Management Company (AMC) / Registrar and Transfer Agent (RTA).
5. After due verification, the AMC / RTA will confirm the conversion request executed by DP and the mutual fund units will be credited in your demat account.

Details of your existing investments in mutual fund units can be found in the statement of account received from AMC or its RTA. This information is also available in Consolidated Account Statement (CAS) that you receive from your depository. All existing mutual fund investments through SIP mode can also be converted into demat form.

How to Subscribe to mutual fund units in demat form?

Now all AMCs offer units of various schemes (Direct and Regular option both) in demat form also during the NFO and later too. All you need to do is to mention details of your existing demat account (Client ID and DP ID) in the subscription form. Rest of the subscription process remains as it is.

Many AMCs, stock brokers and other mutual fund distributors provide online application facility for subscription to NFO and ongoing schemes.

How to Redeem mutual fund units held in demat form?

You can redeem your mutual fund units held in demat form through your DP or stock broker.

1. Redemption through DP
   1. Obtain Redemption Form (RF) from your DP.
   2. Fill-up the RF and sign it. Incase of joint holders, all holders should sign the form.
   3. Submit the RF to your DP.
   4. After due verification, your DP will execute electronic redemption request. It will be electronically forwarded to the AMC or its RTA.
   5. The AMC / RTA will verify the redemption request and if in order, confirm it in depository system. This will result in debit of mutual fund units in your demat account.
   6. AMC / RTA will arrange the credit of redemption amount to bank account which is linked to your demat account.
   
   
2. Redemption through stock broker
   1. Place your sale order to your stock broker.
   2. Deliver the units sold to your broker by submitting a delivery instruction slip (DIS) to your DP.
   3. Delivery should be in favour of designated CM Pool account of the concerned Clearing Corporation. Take care to ensure that delivery instruction is submitted as per the timelines prescribed by your DP.
   4. The Clearing Corporation will credit the funds in your stock broker’s clearing bank account through usual settlement process.
   5. Your broker will credit the due amount to your bank account.
   
   
3. Redemption through NSDL’s SPEED-e facility
   1. Submit Redemption instruction online through your SPEED-e login. This facility is available to both types of users – those who access SPEED-e through password or e-token.
   2. Your redemption instruction will be electronically forwarded to the AMC or its RTA.
   3. The AMC / RTA will verify the redemption request and if in order, confirm it in depository system. This will result in debit of mutual fund units in your demat account.
   4. AMC / RTA will arrange the credit of redemption amount to bank account which is linked to your demat account.



Frequently Asked Questions (FAQ)

Click here to view FAQ on Holding Mutual Funds Units in Demat