The Securities Exchange Bord of India (SEBI) recently came up with a circular that requires AMCs to list schemes that are being wound up. This means the six Franklin India debt funds that are in the process of being closed down can now be listed in the stock exchanges.
- What does this listing provision mean for you?
- Will you be able to get back your money by selling in the market?
- What is the procedure to demat your units?
- Is it a good idea to demat your funds and sell them?
- What will be the impact for you if you do this?
These are some of the questions that we try to address in this video by Vidya Bala.
You should remember that there can be complexities in opening a broker account if you are with an offline IFA or distributor and are now moving to any direct plan broker. These are aspects you need to consider before you demat.
In summary, you can opt for demat if you have a crying need for liquidity. There may be takers in the market hoping to benefit from buying units from you now and getting a larger sum when the repayment happens. So, when you sell your units be aware that there won’t be many takers and you may not get a price that is favourable to you.
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Earlier video on this topic: https://www.youtube.com/watch?v=r2UX0tpcwWY&t=34s