3.17.1 Closing an Unit Holder Account

This topic provides information on closing an unit holder account.

The investor may wish at any juncture, to close operations with the AMC. At such a time, the account maintained for the investor in the system database must be closed.

Specify the following information in this screen:

• The ID of the unit holder whose account you want to close.
• The reason for closure or any description / narrative regarding the same, in the Closure Remarks field.

In the event of an account closure request, the holdings of the investor in all funds transacted in must be brought down to zero. Therefore, when you close a unit holder account in the system, the following events take place:

• If the unit holder has entered into transactions, then the status of account is marked as Pending Closure.
• Subsequently, in this state, this account is still valid in the system, but it cannot be edited or amended (as the case may be), or used to enter into any further transactions. If the unit holder avails the check writing facility, any checks that have been issued through check-writing facility are marked invalid.
• After the transactions are allocated, and the holdings of the unit holder in all the funds that have been transacted in are brought down to zero, the status of the account is marked as Closed, and the account is then no longer valid in the system.

You can close any unit holder account, except in the following circumstances:

• The account is an unauthorized account in any way. The account closure facility applies only to authorized accounts. There must not be any details (whether new or amended) pending authorization.
• The agency branch from which the closure request is being made is not the one where the account was created. An account can be closed only in the branch where it was opened.