Stock Exchange Transaction Related FAQs

FAQs - Stock Exchange Transaction Related

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• What does this facility offer me?

  This new facility enables transactions (purchase/redemption) of units of DSP BlackRock Mutual Fund Schemes through the Stock Exchange infrastructure and is available on NSE and BSE. This electronic platform available at BSE is called Bombay Stock Exchange Platform for Allotment and Redemption of Mutual Funds (BSE StAR MF) and as Mutual Fund Services System (MFSS) with NSE.

• What is the advantage of the new system?

  The process of buying is more simplified, with approximately 2 lakh share-broker terminals and the penetration of share-broking offices even in rural areas. You need not fill application forms for buying different schemes. All you need to do is to approach your broker.

• Is this new facility available to all investors?

  This facility is currently being offered to all investors. However, investors need to have units held in dematerialized form to transact through stock exchange platforms.

• How do I convert my physical units into dematerialized units?

  For existing Investors who desire to convert their physical units into dematerialized form shall submit the dematerialization request to their Depository Participants (DPs). The process of dematerialization and rematerialsiaton is the same as applicable for equity shares. For complete detail on 'Dematerialization of units', please click here.

• What are the market hours for investments through this platform? And what would be the 'Applicable NAV'?

  It's available to the participants on all business days of the Capital Market segment between 9 a.m. and up to 3 p.m. 'Applicable NAV' shall be reckoned on the basis of the time stamping as evidenced by confirmation slip given by stock exchange mechanism.

• Is there any minimum investment amount restriction through this platform?

  The minimum investment amount / value applicable under the existing system of Mutual Fund investments is applicable under this platform as well. There is no change in minimum investment value / amount. However, only subscription applications upto Rs.1 crore per transaction can be accepted.

• Are SIPS, SWPs, STPs and switches allowed under this platform?

  SIP registration and transaction facility is now available on the MFSS platform of NSE and also on StarMF platform of BSE. Other transactions like switches, SWP & STP will be subsequently introduced by the stock exchanges.

• Which schemes are available on this platform?

  DSP BlackRock Mutual Fund offers the Regular Plan of all schemes as well as Institutional Plan of DSP BR Liquidity Fund for transacting through the stock exchange mechanism. Please refer to the list of schemes.

• How do I purchase units through this platform? What documents are required?

  Firstly, you need to have a demat account with CDSL/ NSDL incase you wish to transact through this mechanism. Thereafter, you can approach a trading member of BSE or NSE registered with stock exchange as participant (& who is also registered with AMFI as Mutual Fund Advisor and with DSP BlackRock MF) to avail transaction facility through stock exchange platform as currently followed for secondary market activities and provide depository account details and PAN details.

• How do I sell units through this platform?

  Firstly, you need to have units is dematerialized form in a demat account with CDSL/ NSDL incase you wish to sell through this mechanism. You should provide depository account details and PAN details to the stock exchange trading member. Also provide your Depository Participant with Delivery Instruction Slip (DIS) with relevant units to be credited to Clearing Corporation pool account same day before 4.30 p.m.

• Is reinvestment available as an option under the dividend option in the eligible schemes through this route?

  Yes. We are currently providing Growth, Dividend - Payout & Dividend-reinvestment options in the eligible schemes wherever it is available. Kindly refer the list of schemes.

• Will the purchase/redemption applications submitted to the trading member for this facility comply with the requirement of submitting applications only at Official Points of Acceptance (OPA)?

  Yes, the eligible trading members will be considered as Official Points of Acceptance (OPA) of DSP BLACKROCK Mutual Fund.

• How will I get my redemption payment? Will my broker issue the redemption cheque or will the payment be sent to me by the Mutual Fund?

  The payment for the redemption of your Mutual Fund units shall be directly sent to you by the Mutual Fund, as per the bank account details recorded with the Depository Participant.

• Will I get an Account Statement for my investments with your fund house through this medium?

  A demat statement provided by the Depository Participant in such form and in such manner and at such time as provided in the agreement with the beneficial owner shall be equivalent to an Account Statement and no further statement shall be issued by the Mutual Fund.

• Will the folio be the same in case of units held in physical and demat mode?

  Separate folios will be allotted for units held in physical and demat mode.

• Are the units of the eligible schemes of DSP BlackRock Mutual Fund listed on BSE & NSE? Can the units be traded on the stock exchange(s)?

  No. Unlike equity shares, the units of eligible Schemes of DSP BlackRock Mutual Fund are not listed on BSE & NSE and the same cannot be traded on the Stock Exchange.

• Does the trading member of BSE or NSE have to be AMFI certified or empanelled with DSP BlackRock Mutual Fund ("the fund") or registered with BSE or NSE to offer this facility?

  Yes the trading member has to have an AMFI Registration Number (ARN), has to be empanelled with the fund and also registered with BSE or NSE as Participant to offer this facility.

• Does the investor have to sign any documents with the trading member?

  There is a letter to be signed and provided by the investor to the trading member for registering for this facility. This letter also contains the terms and conditions of the MFSS/BSE StAR MF facility. The letter format can be provided by the trading member.

• Can an investor transact through this platform in physical mode also?

  No. Currently DSP BlackRock Mutual Fund is not open to transacting in physical mode through this platform.

• What confirmation will the investor get for the order placed through the trading member in demat mode?

  The investor will receive from the Trading Member a confirmation slip (which will contain unique confirmation number and date and time stamp of order entry) generated from the MFSS/BSE StAR MF system. Till the Trading Member provides allotment details to the investor, the order confirmation slip would be the proof of the transaction. Demat statement given by depository participant would be deemed to be adequate compliance of the requirement of Statement of Account.

• Can I give the application for the change of address, change of bank particulars etc. to the broker?

  No. The address and bank details are taken from your demat account held with NSDL / CDSL. Should you wish to change the address or bank mandate, please approach the entity where you hold your demat account.

• Whom should I contact incase of any grievance?

  For any grievance with respect to transactions through BSE and/ or NSE, the investors should approach either the stock broker or the investor grievance cell of the respective stock exchange.

• If I have a demat account with CDSL and a trading account with a BSE member, is it possible to sell the units in NSE?

  It is only possible to deliver the units to the same exchange. Therefore, it is not possible to sell in NSE, if the same have been bought at BSE. Also, it will also not be possible to buy /sell units at NSE without an NSDL account. However, the BSE allows both CDSL and NSDL members to trade on the BSE.

• Will the broker charge a fee for every transaction?

  Yes, brokers charge brokerage on every transaction. The quantum of brokerage is a commercial arrangement between the investor and the broker.

• How does an investor dematerialize units?

  In case an investor desires to convert the physical units (represented by statement of account) into dematerialized form, the investor should approach their Depository Participants (DPs). The Investor should get the Dematerialsation form for conversion of mutual fund units into demat mode. For complete information click here, 'Dematerialization of units'.

• How does an investor rematerialize units into physical form?

  In case an investor desires to convert the dematerialized units into physical form (represented by statement of account); an application for Rematerialization of units should be submitted to its Depository Participant.

• Can I do an off market transfer of dematerialized held by me units to another person?

  Yes. The units in demat mode are transferable. Please approach your Depository Participant for the off market transfer.