Mutual Fund Demat TradingNo. of comments:1 M.M.Gandhi, Pune, 53079 On 29-Jul-2015

I am using NSE MF II platform, Apart from its convenience and wellness, want to ask... 1) Is it possible to hold purchased units in investors demat a/c ? 2) If so, then whether distributor gets TRAIL commission on same transactions or not..? I came to know, distributor do not get trail on such trans. But it not logical because purchase trans. done in the scheme of perticular AMC and here only mode of unit holding is changed. If perticular DP is MF distributor, how they could have transaction authority of other investor a/c..? I think trail is being paid by AMC and not DPs...and DPs take annual maintenance charges for demat a/c. 3) When distributor will get authority to sell/redeem units held in investors demat a/c...? This will be misuse of a/c. Then DP as a distributor should treat their own a/c seperately. Is this demat trading facility available in any platform for distributor...? I have been asking many AMCs but nobody has given clear answer. Under these circumstances, distributors are getting demotivated to trade in demat mode.

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Comments Posted
yfs ARN NO :arn-yfs pune, 29 Jul 2015

1]with best of my understanding if distributor sell mf units to investor and if they are held in demat form he does get upfront and trail as well 2]distributor can not sell units held in Demat form even if he has bought for investor , investor can redeem unit from DP only 3] no platform allows you to sell mutual fund unit held in demat form but u can buy it and keep in demat , its one way ,entry but no exit from distributor''s route 4]you will never get authority to sell units from demat unless u are DP or registered sub broker to DP 5] ETFs would get benefit if distributors gets access to DP for transaction , u can earn upfront on volume, no claw-back , those who prefer this style of work would sell ETFs .tradistional mf will get benefit from long term trail oriented AUM from distributor and goal oriented from investor point of view

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