Fund houses have
started informing investors about holding SIP units in demat by publishing
Fund houses will allow investors to hold their SIP units in dematerialized form
from January, 2012.
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.
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.
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.