If I transfer mutual fund units from my brokerr’s demat account to Zerodha Coin (non-SoA format), can I redeem them normally, just like I do with mutual funds bought directly through Coin?
I’ve heard that when we purchase demat mutual funds, AMCs assign a broker code to the demat folio, and that broker code must match the one used for initiating redemption. Is this true?
Also, what if I transfer mutual fund units held in my name to a friend’s (or any random person’s) demat account? At the time of redemption, the folio name and the demat account holder’s name won’t match — what happens then?
And one more thing — when I buy demat mutual funds, they also show up on the myCAMS website. If I transfer these units to a friend or a random person, will those units still appear on their myCAMS account, or not?
AFAIK, mutual fund units can not be transfered or gifted to anyone. It have to be redeemed and bought again. But yes you can move between brokers for online/Offline
Once the units are credited to your Zerodha demat account with CDSL, you will be able to redeem them on Coin, and the redemption will be processed without any issues, provided the units are not under lock-in or freeze.
With demat units, redemption happens at the depository level. There’s no restriction based on the broker code for demat MF units. You can check your holdings either on the Coin platform, back-office Console, or the CDSL Easi/Easiest portal (our depository) before initiating the redemption on Coin.
Once the units are transferred to other demat account, provided there are no KYC issues for either party, the recipient becomes the owner of the units and can redeem them through the broker platform where the units are held.
Yes, the units will show up under the other’s myCAMS account (linked to the PAN of their demat account).