As per AMFI Best Practices Guidelines Circular No. 116/2024-25 (dated 14th August 2024), mutual fund investors can now transfer units held in Statement of Account (SoA) mode under specified scenarios, without needing to convert them to demat form. This brings greater flexibility and investor convenience.

1. Surviving Joint Unitholder: May add new joint holder(s) to the folio after the demise of one or more original joint unitholder(s).
2. Nominee of Deceased Unitholder: Can transfer units to the legal heirs after the units are transmitted into their name.
3. Minor Turned Major: Once the unitholder becomes a major, they may include a parent/guardian/sibling/spouse as joint holder(s).

Key Guidelines:

• Applicable Schemes:
  The facility is available across all mutual fund schemes, except Exchange Traded Funds (ETFs).
• Partial Transfers Allowed:
  Unitholders may transfer a part of their holdings. However, if the remaining units in the folio fall below the scheme’s minimum balance requirement, the residual units will be automatically redeemed, and proceeds will be paid to the original holder.
• Record Date Rule:
  If a transfer request is submitted on the record date for dividend distribution, the dividend payout/reinvestment will be processed in the name of the transferor.
• 10-Day Lock-In Period:
  Post-transfer, a 10-day restriction is placed on redemption of the transferred units to help prevent and detect any fraudulent transactions. This period provides the transferee time to report any irregularities.

Please note:

• This facility is limited to individual unitholders as outlined under Phase I.
• Unitholders are advised to consult with their financial advisor or the fund house for detailed procedures.
• The facility will be extended as per future AMFI/SEBI updates and operational frameworks.



Click here to transfer of units held in non-Demat (SOA) Mode