Home | Register | Sign in | Contact Us | Sitemap |
   
01 Jan 2012 12:00 PM
Fund houses to offer SIP units in demat from January 2012 
Ravi Samalad
 

Fund houses have started informing investors about holding SIP units in demat by publishing addendums.

Mumbai: Fund houses will allow investors to hold their SIP units in dematerialized form from January, 2012.

SEBI through its circular issued on May 19, 2011 had asked fund houses to allow investors to receive allotment of units in demat account from October 2011. The regulator had observed that AMCs were offering investors to hold units in either physical or demat in close-ended schemes. However, no such option was allowed in open-ended schemes. Fund houses have already started issuing addendums to this effect.

Opting for SIP in demat will entail additional cost for investors transacting through the demat route. Some industry officials feel that the move would not mean any benefit to investors as consolidated account statements are already being issued. The advantage of holding SIP units in demat is to get a consolidated view of stocks and mutual fund units.

“The registrar has to process it and the money gets credited on a weekly basis in the demat account. The units will be credited only after realization of money. Earlier the option to hold units in demat was available through NSE’s Mutual Fund Service System (MFSS) and BSE’s StAR MF Platform. Now, investors can hold their units in demat through the offline mode as well. All the fund houses now have an ISIN. There will be a cost on each transaction for investors transacting through demat route,” says Jimmy Patel, CEO, Quantum Mutual Fund.

 
|
|
|
|
|
Cafemutual welcomes your comments. Any disagreements or criticisms must be expressed in a dignified manner. Thank you.
blog comments powered by Disqus
 
Related Articles
MF Utility rolls out across India
50 best funds to invest in 2015: iFAST
RBI surprises markets with 25 basis repo rate cut
FMC SEBI merger may open gates for commodity mutual funds in India
Majority of people like to continue working after retirement: Merrill Lynch
Who will bear service tax on commission, distributor or AMC ?
Budget 2015 proposals for mutual funds
Five minute guide to Union Budget 2015
NFOs now open March 05
Union KBC Mutual Fund to launch series 2 of its trigger fund
LIC Nomura MF launches LIC Nomura MF RGESS-Series 3
HDFC launches Rajiv Gandhi Equity Savings Scheme
JP Morgan launches India Economic Resurgence Fund
UTI Mutual Fund launches UTI Focussed Equity Fund-Series II (1102 days)
SBI Mutual Fund launches SBI Equity Opportunities Fund - Series II
Canara Robeco launches India Opportunities Fund
 
About Us | Media | Advertise With Us | Editorial Policy | Contact Us | Privacy Policy | Disclaimer | Sitemap
© Cafemutal.com. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of cafemutual.com is prohibited.
Best Viewed in I.E 7.0 and above. Resolution: 1024 * 768. Developed & Hosted by Accord Fintech Pvt. Ltd