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What is the procedure to dematerialise mutual funds?

You must stop your ongoing SIP or STP before sending the dematerialisation request to Zerodha.

Dematerialisation is the process of converting mutual funds that are in physical form into dematerialised form that can be held in a demat account.

Documents required

For each ISIN, fund, or folio (same or different AMC), you need:

  • 2 destatementised forms (PDF) signed in signature with DP and signature with RTA fields
  • 1 self-attested PAN card copy
  • 1 self-attested mutual fund statement

Example: To dematerialise 2 schemes, you need 4 demat request forms, 2 self-attested PAN copies, and 2 self-attested mutual fund statements.

Submission process

Courier the documents to:

Zerodha Customer Support Centre
192A 4th Floor,
Kalyani Vista, 3rd Main Road,
JP Nagar 4th Phase,
Bengaluru, 560076

The RTA takes up to 25 days to dematerialise and credit the units to your demat account. Once credited, your units will be displayed on Console. Close-ended mutual funds that are dematerialised will not be displayed on Coin. Kite will display close ended mutual funds under holdings, provided they are listed on the secondary market. Console will display them as ISINs under holdings if they are not listed on the secondary market. These funds can also be viewed on the holding statement.

You will receive SMS and email notifications when the units are credited to your demat account. You may notice a price discrepancy on Coin, which you can fix by entering the original purchase price on Console.

Charges for dematerialising

Type Charges (₹) + 18% GST
Dematerialisation request per scheme. 150
Dematerialisation request for ELSS funds per investment. 150
Courier charges since Zerodha has to courier the forms to the RTA 100

Zerodha deducts dematerialisation charges from your Zerodha account balance, which you can view on your funds statement.

ELSS schemes dematerialisation

Before dematerialising the ELSS scheme, stop or pause the SIP. If it's not stopped, then the investment will continue in physical or non-demat mode, and the investment can be tracked only via the RTA or AMC.

To dematerialise ELSS schemes, you must courier 2 destatementised forms (PDF) along with 1 annexure (PDF) for each mutual fund investment, ISIN, or folio. Zerodha will generate DRN for each purchase date.

If an ELSS investment is made using SIPs, dematerialisation charges will be levied for every instalment. Assume 10 monthly SIPs are made into an ELSS fund, and a dematerialisation request is placed. Charges will be applicable for each individual SIP instalment.

Transfer of ELSS will not be possible since it will be under the lock-in period.

To redeem an unlisted closed-ended mutual fund, a redemption requisite form (PDF) must be submitted.

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