How To Sell Mutual Funds in Zerodha Coin?

Finance Guru Speaks: This article will guide you on how to Sell Mutual Funds in Zerodha Coin.

How To Sell Mutual Funds in Zerodha Coin

As per the Website- Zerodha Coin is India's largest direct mutual fund platform that lets you buy/sell direct mutual funds online with no commission passback, directly from asset management companies.

Zerodha, as a Trading and Demat Account, has gained very wide popularity because of very low-cost trading and ease of use. If you don't have the Zerodha account, then you can open it through this LINK. It is very easy to open a Demat Account in Zerodha.

Steps to Sell Mutual Funds in Zerodha Coin:-

In my previous article (link), I have shared the Steps to Buy Direct Mutual Funds in Zerodha Coin. So I assume that you have already purchased Mutual Fund units in your Zerodha Coin account.

1. Login to Coin by Website or Mobile App. In this article, we have sold Mutual Funds via Coin Android App through Smartphone.

How To Sell Mutual Funds in Zerodha Coin

2. On the Home Page, go to the Investments section & click on the Fund Name to sell your desired Mutual Fund, as shown below.

In this article, we are selling ICICI Prudential Liquid Fund. The steps mentioned can be applicable for other Mutual funds as well:-

click to enlarge - How To Sell Mutual Funds in Zerodha Coin

3. On the Next Screen, click on 3 dots as shown below:- 

click to enlarge - How To Sell Mutual Funds in Zerodha Coin

4. Now, click on the Redeem button:-

click to enlarge - How To Sell Mutual Funds in Zerodha Coin

5. On the Next Screen, enter the Mutual Funds Units to be Redeemed (E.g. 200) and click on the Redeem button:-

click to enlarge - How To Sell Mutual Funds in Zerodha Coin

6. Again click on the Redeem button:-

click to enlarge - How To Sell Mutual Funds in Zerodha Coin

7. You have to complete this redemption by authorizing it via CDSL (your Demat depository). Click on Continue button:-

click to enlarge - How To Sell Mutual Funds in Zerodha Coin

8. On the Next Screen, click on Continue to CDSL button:-

New Pledge System - How To Pledge Your Shares in Zerodha and Generate Margin

Finance Guru Speaks: This article will guide you on how to Pledge your existing Shares in Zerodha to generate Collateral Margin to be used for Intraday or F&O Trading.

Zerodha, as a Trading and Demat Account, has gained very wide popularity because of very low-cost trading and ease of use. If you don't have the Zerodha account, then you can open it through this LINK. It is very easy to open a Demat Account in Zerodha.

To begin with, normally you pledge your shares to generate the Margin, which can be later used for trading Intraday, Futures, or Options. The Pledged Shares need to be Authorised as per the new Pledge System.

Steps to Pledge Shares in Zerodha:-

1. Login to Zerodha after clicking here. Provide your User ID, Password, and then your assigned PIN to Login.

Zerodha Login

Zerodha Login

2. On the Home Page, go to the Console. You can click this link as well once you logged in, to go to Console.

3. On the New Page, Click on Portfolio and then on Holdings:-

How To Pledge Your Shares in Zerodha and Generate Margin

Download Kotak Securities Account Closure Form To Close Trading Account

Finance Guru Speaks: This article will provide you Kotak Securities Account Closure Form for Individual-Residents to close the Trading/Demat Account.

You have to fill this Account Closure Form and submit to the Kotak Securities branch when you want to close your Demat or Trading Account. You can also use this Form to transfer your DP Account from Kotak Securities to another DP Participant. 

Example- To Close & Transfer your all the Kotak Securities holding Shares to ICICI Direct or Zerodha, etc.

To download:



Please click:  Kotak Securities Account Closure Form

Important instructions shared by Kotak Securities -

1. Please surrender all unutilized Instruction Slips along with this Closure Request.
2. Account will be closed, subject to NO HOLDINGS and SIGNATURE VERIFICATION as on records.
3. In case of joint holders, all holders must sign.
4. Please clear the DP dues if any.
5. In case of any Mutual Fund holdings at the time of closure, you may either redeem the same or get it transferred (Note: The ARN shall be changed from Kotak Securities Limited (KSL) to the target distributor’s ARN, as specified by you or to the offline ARN of KSL if no ARN is mentioned by you on conversion request)
6. In case of closure cum transfer case, the BO should submit duly certified (signed and stamped) Client Master Report (CMR) obtained from the target Participant.
7. Please note that once your trading/demat account is closed, all active and running SIP’s sourced through our portal/any online mode will be deemed to be cancelled with immediate effect.
8. Your request will be processed within a tentative period of 10 working days from the date of receipt of complete documents.

Also Read:

More Articles on Download Forms

Images Courtesy: Kotak Securities Website

New Changes in KYC Guidelines (Important!)

Finance Guru Speaks: We would like to update you on the additional Know Your Client (KYC) requirements by KYC Registration Agency (KRA) for investors who have completed their KYC formalities prior to January 1, 2012. From December 1, 2012 onwards certain additional information needs to be submitted as well as an 'In Person Verification' (IPV) needs to be completed for further investments in any mutual fund (other than the one in which you have already invested).

SEBI (Securities and Exchange Board of India) vide circular MIRSD/SE/Cir-21/2011 dated October 5, 2011 has recommended / mandated all mutual fund investors, that the standard KYC form and supporting documents is to be used in accordance with the uniform KYC guidelines. Also the KYC registration needs to be centralized through KRAs w.e.f. January 1, 2012. This was a very welcome step as KYC process is to be done only once for all SEBI registered intermediaries such as Mutual Funds, Stock Brokers, Depository Participants, Portfolio Managers, Collective Income Schemes and Venture Capital Funds.

If you have already invested in a particular Fund house and have completed your KYC before January 1, 2012 then you are already a KYC compliant investor and can make further investments in the existing fund house without any further KYC requirements.

If you have already invested in any particular Fund house and now wish to invest in another Fund house where you have not invested before January 1, 2012 then you will have to complete the KYC formalities again by filling up the new KYC form implemented after January 1, 2012 with supporting documents duly attested and complete the In Person Verification (IPV). 

IPV is also an additional requirement by SEBI from January 1, 2012 wherein the registered intermediaries will verify the investor physically. Mere submission of identity and address proof is not sufficient under the new regulations.

All intermediaries in the security market are authorized to conduct IPV. In case of Mutual Funds, Asset Management Companies (AMCs) and distributors who comply with the certification process of National Institute of Securities Market (NISM) or Association of Mutual Funds (AMFI) and have undergone the process of Know Your Distributor (KYD) can perform IPV. Further, in case any applications are received directly from the investors (i.e. without being routed through the distributors), the Mutual Fund may rely upon the IPV (on the KYC Application Form) performed by scheduled commercial banks / authorised employees of AMC.

Presently IPV can be carried out by any of the following intermediaries:

1. KYC Registration Agencies (KRAs),
2. Stock Brokers through Stock Exchanges,
3. Depository Participants (DPs) through Depositories,
4. Mutual Funds (MFs)
5. Portfolio Managers (PMs)
6. Venture Capital Funds (VCFs)
7. Collective Investment Schemes (CIS)
8. NISM/AMFI certified distributors who are KYD compliant
9. Scheduled Commercial Banks

For Individuals -

The revised KYC form effective from January 1, 2012 for Individual category has additional provision for details such as Father's / Spouse Name, Marital Status, Nationality, Gross Annual Income / Net worth details and In-person Verification. The revised KYC form can be used for changing contact details like address, email id and phone no.

Hence, existing individual investors who are Know Your Client (KYC) registered prior to January 01, 2012 through CDSL Ventures Ltd. (CVL) and who wish to invest in any new mutual fund / through capital market should complete the additional KYC requirements/provisions (as mentioned above) using the KYC Details Change Form on or before November 30, 2012.

NOTE :

1. Updating of additional KYC requirements along with IPV is currently a one-time requirement and needs to be completed with any one of the mutual funds i.e. need not be done with all the mutual funds where the investor has existing investments.
2. The requirement is mandatory and the investor who wants to open a new account/folio with a new mutual fund from December 1, 2012, is required to complete the above formalities on or before that date in order to enable them to invest in a new mutual.
3. This will not affect subsequent transactions (or ongoing SIPs) of investors in their existing mutual fund folios/accounts which is KYC compliant under the erstwhile centralized KYC with CVL (CVLMF).
4. Please note that the KYC updation and IPV (one time) as detailed above will be mandatory for registering any change in the KYC information like address, contact information, etc.

IMPORTANT: Please ignore this article incase you have done your KYC post January 1, 2012.

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What is a Demat Account?

Finance Guru Speaks: Demat refers to a Dematerialised Account.

Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open your demat account. DPs can be Kotak Securities, Share Khan, India Bulls, ICICI Directs etc.

Let's say your portfolio of shares looks like this: 40 of IOC, 25 of TCS, 45 of RIIL and 100 of INFY.

All these will show in your demat account.

So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.

As you buy and sell the shares, they are adjusted in your account.
Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

A Demat account is a must for trading and investing.

Get your documents in place

Once you approach your DP, you will be guided through the formalities of opening an account.
You must fill up an account opening form and sign an agreement with your DP.

The DP will ask for some documents as proof of your identity and address.
Check with them what they require. For instance, some may accept a driver's license, others may not.
 

Here is a broad list (you won't need all of them though):

* PAN card
* Voter's ID
* Passport
* Ration card
* Driver's license
* Photo credit card
* Employee ID card
* Bank attestation
* IT returns
* Electricity/ Landline phone bill

While they only ask for photocopies of the documents; they will need the originals for verification.
You will have to submit a passport size photograph on which you sign across.

The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.

You can nominate whoever you like by filling up the nomination details in the account opening form. This is to enable the nominee to receive the securities after the death of the holder of the demat account.

All set?

When you open an account, the DP will allot a unique BO ID (Beneficial Owner Identification) Number, which you need to quote for all future transactions.

If you want to sell your shares, you need to place an order with your broker and give a 'Delivery Instruction' to your DP.

The DP will debit your account with the number of shares sold. You will receive the payment from your broker.
 

If you want to buy shares, inform your broker about your Depository Account Number, so that the shares bought are credited into your account.

It's that simple.

Now get that account! :-)

 

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How To Check KYC Verification Status?

Finance Guru Speaks:  This article will provide you details on how you can check the status of your KYC Application. KYC verification is mandatory for Mutual Funds investments.

You can check your KYC Status from this link: KYC Status

You need to provide your PAN No. inorder to get the information.

If you don't know your PAN No, then you need to provide details like your Name, Date of Birth

KYC Status Check page looks like below:

Click to enlarge - KYC Inquiry

If your application is verified successfully, then you get the information as shown below:

Click to enlarge - KYC Inquiry Status

Images Courtesy:CDSL Ventures Limited Website

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