A few days ago, my old CDSL demat with broker X was closed and shares and Mutual funds units [in demat form] were transferred from there to my new demat account with broker Y [also a CDSL broker ] using closure & transfer process.
Then, I tried to sell units from one of the transferred mutual funds from my new demat account with broker Y.
I got a rejected error. Remarks for this transaction rejection from the fund house -
DP ID Match not found.
What does this mean?
I have asked the broker as well, but I wonder if the fund house also has to be approached by me? Usually the fund house support says " it’s a demat mutual fund folio held in demat form, we can’t change anything"
Also note:
The fund house has debited the units from my new demat account,
then rejected the sell transaction, but has not credited those units back to my demat account yet…
As it was rejected, the money for the selling of those units has not been credited to my bank account either…
You need to take this up with your new Demat account broker, they will have to approach the amc and get the units reversed to your Demat account from the RTA.
Thank you Neelesh! Yes, I have mailed my new broker to reverse those units and also to correct the “DPID Not Matching” error. It seems from this ordeal that holding mutual fund units in demat form is not so great for flexibility… units are locked with the depository and moving between brokers has these issues…
As you say, there is a chance that while updating the instruction to the depository the demat account number would have been mentioned incorrectly from my broker. Is it also possible that while units have moved to my new demat after the closure&transfer, maybe the mutual fund AMC is totally unaware of this transfer and still thinks my units are with my old broker X instead of new broker Y?
any update?