Your mutual fund redemption order can be rejected for the following reasons:
CDSL authorisation not completed
If you do not complete the CDSL (Central Depository Services Limited) authorisation on time, your SWP (Systematic Withdrawal Plan) or STP (Systematic Transfer Plan) redemption orders will be rejected with the remark: UNRID-Transaction Is Cancelled As There Is No Matching Sell Transaction.
You can authorise redemptions using your CDSL TPIN or enable DDPI (Demat Debit and Pledge Instruction) to avoid manual authorisation for future redemptions.
Lock-in period or insufficient units in your demat account
- Lock-in period: ELSS (Equity Linked Savings Scheme) funds have a lock-in period of 3 years, and retirement funds have a lock-in period of 5 years. You cannot redeem units during this period. Orders placed during the lock-in period are rejected with the remark: Units are under lock-in.
- Pledged units: If your mutual fund units are pledged, your redemption order will be rejected. You can unpledge your units to make them available for redemption.
Demat account is frozen
If your demat account is frozen, your redemption orders will be rejected.
KYC non-compliance
If your account is KYC (Know Your Customer) non-compliant, your redemption orders will not be processed. In this case, you need to submit the required documents by raising a support ticket or following the instructions sent to your registered email address.