“Funds and systems move in an aggregate way from broker’s account to registrar and transfer representatives’ or possession management companies’ accounts. In case financiers who redeem and buy MF systems in demat form through brokers and clearing members, fund house is discharged of its responsibility of payment or credit of systems, if such payment or the units have actually been credited to the broker/clearing members. Rather, clients are needed to give cheques or payment instruments which are in favour of AMCs.
“Funds and systems move in an aggregate manner from broker’s account to registrar and transfer representatives’ or asset management companies’ accounts. In case financiers who redeem and acquire MF systems in demat form through brokers and clearing members, fund house is released of its obligation of payment or credit of units, if such payment or the systems have actually been credited to the broker/clearing members. In physical applications, distributors are not allowed to take cheques or payment instruments from customers in their names. Instead, customers are needed to give cheques or payment instruments which are in favour of AMCs.
