Option to hold units in demat form
Summary
This circular advises Mutual Funds and AMCs to provide investors with the option to hold units in demat form for all scheme types. It mandates that this option be implemented for existing and new schemes starting from October 1, 2011. Additionally, it requires entities to obtain and quote ISINs for each scheme option in statements issued from the same date.
Text
Mutual Funds/AMCs are advised to invariably provide an option to the investors to mention demat account details in the subscription form, in case they desire to hold units in demat form.
Mutual Funds/AMCs shall ensure that above mentioned option is provided to the investors in all their schemes (existing and new) from October 01, 2011 onwards.
Mutual Funds/AMCs are advised to obtain ISIN for each option of the scheme and quote the respective ISIN along with the name of the scheme, in all Statement of Account/Common Account Statement (CAS) issued to the investors from October 01, 2011 onwards.
This circular is issued in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulation 77 of SEBI (Mutual Funds) Regulations, 1996.
Source: SecMarx — Option to hold units in demat form. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.