1.5 Requests for De-materialization Processing

This topic provides information on requests for de-materialization processing details.

FCIS also processes requests by unit holders for de-materialization of shares i.e., conversion from physical to electronic form, which can be kept in a depositary. A unit holder could therefore be a beneficiary in the depositary.

FCIS maintains the balances of unit holders in any fund of the AMC. FCIS also maintains the balances of depositary unit holders. Therefore, when a unit holder who has purchased the shares from the AMC requests for de-materialization, you can enter a transfer transaction for the unit holder, through which the physical holdings (i.e., the shares that need to be converted) can be transferred to the depositary unit holder balance in electronic form. The beneficiary balance of the unit holder, in the depositary unit holder account, will be updated with the transferred shares.

Example

Mr. X, a unit holder of your AMC, holds 100 shares that he has purchased from your AMC, by subscribing to the Carey Bugle Growth Fund. He wishes to convert these shares to electronic form.

Mr. X is also a beneficiary in the NGDL Depositary, which has a depository unit holder account in your AMC.

To process the de-materialization request, you enter a transfer transaction with Mr. X as the transferor, in Units mode, and specify the certificate details of the 100 shares that must be dematerialized. The transferee for this transaction would be the depositary unit holder account held by NGDL, in which Mr. X is a beneficiary. The beneficiary position of Mr. X in the Carey Bugle Fund will be updated with the units transferred due to the de-materialization of the 100 shares.