I have redeemed some mutual funds through coin, why did I receive an SMS from the AMC as a cheque will be dispatched?
Your investment in mutual funds through coin is using your Zerodha demat/ trading account, all the units are credited and debited from your Zerodha CDSL demat account. You can check the CDSL demat account number on console under my profile. Similarly, when you purchase a mutual fund the amount is debited from your trading account (Equity trading account balance), in case you redeem a mutual fund the settlement of the amount is done in your trading account as per the settlement time of the fund.
In case you have any investments with Zerodha and you receive an SMS from the AMC stating a cheque has been dispatched to your address, you can please ignore the SMS. As per the settlement time of the fund, the amount will be credited to your trading account and not directly to your bank account.
There can be a few cases in which you will receive a direct settlement to your bank account or a cheque from the AMC:
1. Due Dividend Amount: In case you have some dividend payment due on your name and you have modified your bank account with Zerodha due to bank account closure (the AMC has not updated the same from there end), the AMC will dispatch a cheque to your registered address.
2. Corporate Actions in a scheme: Whenever due to certain conditions a scheme ceases to exist, the AMC directly extinguishes the units from your demat account and settles the amount directly to your bank account. If your primary bank account is closed/ inactive the AMC will dispatch a cheque to your registered address.