InvestorQ : How to buy and sell units of mutual funds in demat mode?
indhumathi Sayani made post

How to buy and sell units of mutual funds in demat mode?

Answer
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Dilmini Mercia answered.
2 years ago


In fact, buying and selling mutual funds in the demat mode is very simple and convenient. You can subscribe for Mutual Fund Units through your Stock Broker using the Stock Exchange platform. Upon subscription, your Stock Broker i.e., Clearing Member will credit the Mutual Fund Units into your demat account. You may wonder how to redeem these units of mutual funds allotted into your demat account? You can redeem your Mutual Fund Units held in dematerialised form through two different modes i.e., through your DP or Stock Broker. What is the procedure to redeem the Mutual Fund Units held in dematerialised form through my DP? Obtain Redemption Form (RF) from your DP. Fill-up the RF form and submit it to your DP. After due verification, your DP will execute an electronic redemption request, which will be electronically forwarded to the AMC / RTA. Most mutual funds have either CAMS or Karvy as their RTA.
The AMC / RTA will then verify the redemption request and if in order, confirm the electronic request and make the payment as per your bank account details available in your demat account. What is the procedure to redeem the Mutual Fund Units held in dematerialised form through your Stock Broker? You can do it in the same way as you sell shares in the equity segment. For redemption purpose, in addition to placing order through your Stock Broker, you will have to submit Delivery Instruction Slip (DIS) to your DP to transfer the Mutual Fund Units to the designated CM Pool account of National Securities Clearing Corporation Limited (NSCCL) / BOI Shareholding Limited. Unlike the normal equity selling transaction, you will not be transferring your shares to the broker’s pool (CM) account but directly to the NSCCL pool account.