Good day.
I would like to know who is responsible for making updates in a DEMAT FOLIO? [ i.e mutual funds stored in demat form in a demat account]
Is it the Stockbroker [DP] or the mutual fund AMC ?
Brokers like Zerodha Upstox etc store MF units in demat form.
The mutual fund AMC and RTA like CAMS/ KFin in turn say that because the units are in demat form and it is a demat folio,
only the Depository Participant [DP] can update the details like contact details in the folios.
CAMS and KFin say that the mutual fund AMC / RTA does NOT have any control on demat folios.
Whereas my broker [DP] is saying that DP cannot update any details in the folio since it is managed by the AMC.
These statements contradict each other.
Clearly one of the statements is true and the other must be false.
So, the AMC points their fingers at DP and DP points fingers at the AMC?
When you hold the units in a demat account, the units in your demat account gets allotted in the Demat Account number under the ISIN, the DP does not store the folio number. The RTA in turn assigns the folio number and the details of the folio number are as per the information available with your DP.
When mutual fund holdings are stored in dematerialized (demat) mode, the Registrar and Transfer Agent (RTA) retrieves information from the depository on a weekly basis through a BENPOS file. This BENPOS file compiles various data from the Depository, including phone numbers, email addresses, demat information, and more.
Recently both the RTAs have upgraded there systems to show the data for units in demat mode correctly, more information has been added below
Here, the RTA is liable to grab that modified information for your folio and update that in their DB in all the Demat Maintained folios. So you need to nudge your DP to check with the RTA on if the RTA has been correctly consuming the data or not
Sadly, when I ask the RTA like CAMS/ KFin they repeat the same thing like a parrot: It’s a demat folio, they cannot update the contact details / or any details in the demat folio, and that only the DP can do that.
I went to CAMS/ KFin offices directly as well. They just flat out do not entertain ANY sort of update in a demat folio.
[ The RTA customer care team have no idea of the BENPOS file that you talked about - probably none of their managers gave them training about this or even informed them about the intricacies of mutual funds in demat form. They are just not as well informed as you. ]
Also, Let alone the weekly update, in reality the RTA actually NEVER seems to retrieve information from the depository through the BENPOS file. I dont think they have even heard of it in the first place!
If they did, my demat folios in my MF Central would have been updated with my correct email ID and mobile no.
On the other hand, DP keeps repeating the same thing again and again: DP says that it’s the responsibility of the RTA/ mutual fund AMC and that they cannot make any changes.
So overall, its a deadlock loop where both the RTA and DP point fingers at each other and neither takes responsibility. Neither takes the time to learn about the BENPOS file etc
Hi @Neelesh can you also help me with similar issue. I am als facing the same problem. CDSL website shows my contact details updated against my demat account but demat folio shows contact details not updated.
Hi @Neelesh I am also facing the same situation. Although the contact details have been updated in Zerodha and CDSL using re-KYC, the AMC’s are still sending folio credit and debit information to old mobile number.
Even the demat folio details in Smart statement have the old number registered, they are not getting updated even after raising change request.
Have tried updating the mobile number using CAMS and K-Fin Tech online services, but they do not support mobile number updation for demat held MF units.
