How do I transfer Mutual Funds out of Coin?
There are three ways to transfer mutual fund holdings out of Coin:
1. Transfer to another CDSL Demat account: If you're transferring the units to a CDSL Demat account from Coin, this is a simple procedure. You can use CDSL Easiest to get the transfer out done to another CDSL Demat account. You can read the details here.
2. Transfer to an NSDL Demat account: If you're transferring the units to an NSDL Demat account, you will have to use the Off-market procedure. For off-market transfer of mutual fund units, you will need to use a DIS (Delivery Instruction Slip). DIS is similar to a bank cheque leaf which is used to move money from one bank account to another. With the DIS, you can move shares from one DEMAT to another.
3. Transfer to a Non-Demat mode (Physical mode/RTA Mode/Offline Mode): Many brokers and distributors offer investments in Mutual Funds in non-demat mode. You can check with your broker/distributor (to where the units are being transferred). You will have to follow the process of re-materialization for this (Re-materialization is the process of converting units from DEMAT mode to Physical/Folio mode).
Note: If you are transferring Mutual Funds which are in the lock-in period (ELSS Funds), there are two routes:
1. Re-materialization: You will have to re-materialize the Mutual Funds if you're transferring them to any broker under non-demat mode and/or to an NSDL account as the inter-depository transfer of the units under a lock-in period is not allowed. There is no other route to transfer the units under the lock-in period to NSDL or non-demat accounts.
2. Closure cum Transfer (For CDSL accounts): If you're transferring the units under lock-in to another CDSL Demat account, will have to move forward with the Closure cum Transfer procedure. The transfer of units under lock-in can only be done to an account under same PAN.
If you're closing your Zerodha account because your employer doesn't allow you to trade/invest with us, click here.
Note on Charges:
1. The charges for rematerialization is Rs. 150 + GST 18%. For ELSS funds the rematerialization charges will be Rs 150 per date of investment. Click here for the tariff sheet.
2. You will be charged Rs 100 + GST for the DIS booklet along with courier charges of Rs 100 + GST (the first 10 leaves are free) and 0.03% of turnover or Rs 25, plus 18% GST, higher of the two per ISIN for the transfer of shares.
3. The charges to transfer shares in an off-market transaction are 0.03% of the transfer value or Rs. 25, whichever is higher. You (transferor of the shares) will also have to pay stamp duty at 0.015% on the consideration amount to CDSL on their platform. Learn more.