Buy/sell MF in demat

Learn how to get MF units delivered to a demat account

Note the below prerequisites for buying and selling MF in demat mode

Buy MF in demat

  1. An investor should have an active demat account. FP does not support opening new demat accounts currently.
  2. FP will enable MF purchase processing via your AMC\RTA channel partner account

Sell MF from demat

  1. Per current industry norms, MF redemptions have to be submitted to depositories only for processing.
  2. Share your depository participant credentials as described below. FP will use the same to enable redemption processing from your investor's demat account.
    1. If your depository is NSDL, credentials of your business partner module (https://121.240.225.109/dpm-web/)
      1. User name
      2. Password
      3. BPID
    2. If your depository is CDSL, credentials of your CDSL app (cdslweb.cdslindia.com)
      1. Login ID
      2. Password
      3. DPID
  3. The above DP credentials will be configured in your FP account to accept MF redemption orders

Demat orders

Create investor profile, investment account and add details of your demat account

  1. Setup investor profile
    1. Learn about investor profile
    2. Since the investor has a demat account, the information required to open an MF investment account with FP may be already available with you. You can setup the MF investment account for your investors as and when needed prior to investments.
    3. 2. Learn about MF investment account and the required information
  2. Add a demat account to the investor profile
    1. A demat account number is a 16 digit number obtained at the time of demat account creation with the depository. First 8 digits represent the DP's ID and last 8 digits represent the client ID of the investor with the depository
    2. Provide details of an active demat account

Sample Request

{
  "profile": "invp_ef68993a907b48849a02b403fab8da7f",
  "dp_id": "12081800",
  "client_id": "04571343"
}

Update demat account object in the investment account

Create MF investment account and update demat object id in folio_defaults. This will ensure a new purchase will be processed in demat mode. If the demat object id is null , then a new purchase will be processed in physical mode and will be available only in the folio.

Sample request

{
  "id": "mfia_14bafabfbfbc423d9b54412dd577981b",
  "folio_defaults": {

    "demat_account": "dac_156e3c3bb66e447d8fe7e44d7d941f5a"
  }
}

Fund scheme selection with demat delivery mode

Ensure that the scheme for purchase order is eligible for the demat delivery. Refer to delivery_mode attribute in scheme master.

delivery_mode Description
DEMAT Units will be delivered to the demat account associated with the folio
PHYSICAL Units will be delivered to the folio only
DEMAT_PHYSICAL Units will be delivered to the folio and the demat account associated

Place an MF buy/sell order

FP currently supports below order types

  1. Lumpsum purchase
  2. Recurring purchase
  3. One time Redemption

MF Switch, MF redemption plans(SWP), MF switch plans(STP) orders are not supported currently by the depositories. Let us know if your DP account has support for this, so we can enable these orders for you.

Note:

  1. You do not need to explicitly mention the delivery mode Demat or Physical while placing an order. This is automatically determined as below:
  2. If you are placing a first purchase order in a new folio, and the MF investment account has a demat object id set in the folio_defaults, then the MF units will be delivered in the demat account along with a folio. When the folio is created, it will contain the demat account details.
  3. If you are placing a purchase order in an existing folio, and the folio has a demat id set, then the MF units will be delivered in the demat account along with a folio.

Consents for orders

  1. As per SEBI, in case of demat orders, process of consent collection is followed as per the norms of depositories. Refer 16.5.1.4, SEBI circular for details
  2. As per current industry norms, consent can be collected via an OTP or esign. FP supports consent for orders via OTP currently.
  3. You need to collect 2FA\consent for the orders on email or phone or both that are associated with the folio number.

Note on consents for MF redemptions:

  1. You need to collect consent for MF redemption orders even if the investor has submitted a DDPI\POA document to the DP. This is required as DDPI\POA are not currently supported out of exchange systems for online redemptions.
  2. You can only redeem by units from folios that are linked to demat account currently.
  3. If the DP ID of the demat account in the mf folio object does not match with the DP ID configured in your FP tenant, MF redemptions will be rejected.

Folios

  1. Refer API docs for folio details
    1. If a demat account was associated at the time of folio creation, the folio object will contain the demat account details.
    2. As per current industry norms, only one folio may be created within each AMC if you are buying MF in demat. Example: You already have a folio no. 61576584 with an AMC say ICICI prudential which is associated with your demat account 1208180004571343. If you try to create a purchase in a new folio for same AMC and same demat account in MF investment account, then you will recieve MF units in earlier created folio 61576584 only.