What is Destatementisation (MF Conversion → Demat)?

What is Destatementisation (MF Conversion → Demat)?

Destatementisation is the process of converting mutual fund units held in physical form into electronic form, by transferring them to a demat account held with a Depository Participant (DP).

This allows investors to hold, manage, and transact mutual fund units electronically, alongside other securities like stocks and ETFs, through a single consolidated platform.

 NSDL currently facilitates both online and offline modes for this conversion process.

Online Process (via NSDL website) or below link: -

1. Click on "Dematerialize your Mutual Fund"

2. Enter your PAN number and validate using the OTP sent to your registered mobile/email.

3. Choose your Demat Account Number from the list.

4. Select the Folio Number you wish to dematerialize.

5. Proceed to Review and submit the request.

Once submitted, the request is forwarded directly to the respective RTA (Registrar and Transfer Agent). Upon verification by the RTA, the mutual fund units will be credited to your demat account.

In case of mismatch or issues (e.g, unit balance discrepancy), AMC/RTA may reject. Client can confirm with the DP.

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