MF demat units

Mutual fund investors can hold their units in demat form. They can bring all their mutual fund holdings under a single demat account, in which they hold their other stocks and securities investments. Investors are required to approach the Central Depository Services or the National Securities Depository to convert their MF units to demat form.

Form

Investors need to obtain the Conversion Request Form (CRF) in case of NSDL and Mutual Fund Destatementisation Request Form (MF-DRF) in case of CDSL. This form can be obtained from the Depository Participant (DP) or can also be downloaded from the depository website.

Details

The investor is required to provide DP and Client ID, investor details, folio number of the mutual fund investment and ISIN, which can be obtained from the DP or the respective depository websites.

Declaration

The form also includes a declaration that must be signed by all demat account holders stating that the units mentioned in the form are free from any lien or charge, and also that the units have not been already dematerialised, or no certificate has been issued against the units.

Submission

The form must be submitted to the DP along with a copy of an account statement that holds the investment details of the units sought to be dematerialised.

New investment

In case of a fresh investment, the investor can choose to hold the units in the demat form by mentioning the demat account number details in the application form while making the investment. Alternatively, the investor can route the investment through the stock exchange mechanism to hold the units in the demat form.

Points to note

A separate form needs to be filled for free units and units under lock-in period.

In case of joint holding, the holding pat tern in the mutual fund investment should be identical, and in the same order as the holding pattern in the demat account.