How to sell fractional Units of Nippon India ETF Liquid BeES

 

If you have fractional Units of Nippon India ETF Liquid BeES mutual fund in your Dmat account and you are struggling to sell it, this blog post will help it.

You will not be able to sell this in open market as the mutual fund scheme no longer trades. Therefore, the company (Nippon Mutual Fund) has offered to “buy back” your units. I asked about the process to Nippon customer care and below is the process they shared. I am posting the process as it is for the benefit of other customers who are looking at ways to sell fractional units from their Dmat account and not able to do so. Please note that below information may not be applicable always and the process may change over time, hence you should verify and be sure before doing anything.  

Greetings from Nippon India Mutual Fund! 

Thanks for reaching out to us! We will surely help you with your query. 

Facility for buying back fractional Units of Nippon India ETF Liquid BeES: 

Nippon India ETF Liquid BeES (ISIN: INF732E01037) declares daily Dividend and the same is compulsorily reinvested in the Scheme on daily basis. The Units arising out of Dividend reinvestment results into fractional Units. The Dividend Re-Investment Units are uploaded up to three decimals periodically in the beneficiary account of the Unit holder held with the Depository. As the minimum trading lot on National Stock Exchange of India Limited (NSE) is 1 (One) Unit, the fractional Units of the Scheme cannot be traded on the NSE. In order to provide an exit option to Unit holders holding fractional Units of the Scheme in their demat account, the Scheme will offer a buy back facility to Unit holders holding fractional Units in Liquid BeES. The redemption will be processed on the first Business Day of the following week. To enable this facility the Mutual Fund has opened an account with the Central Depository Systems Limited (CDSL) whose details are mentioned below: 

Instructions to Unit holders: 

1. Unit holders who hold fractional Units of the Scheme in their demat accounts should transfer the fractional Units by submitting an off-market delivery instruction slip (DIS) duly filled and signed to their respective Depository Participant directly. The Unit holders should use appropriate off market transfer slip (intra depository off market transfer slip if the Unit holder holds

a demat account with a CDSL Depository Participant (DP) and an inter depository off market transfer slip if the Unit holder holds a demat account with a National Securities Depository Limited (NSDL) DP) for this purpose. 

2. The Unit holder should transfer the fractional Units of the Scheme to the CDSL account of the Scheme, details of which are mentioned above. 

3. The DP will execute the transfer of fractional Units from the Unit holder’s demat account to the demat account of the Scheme (Target Account). 

4. The AMC / Registrar will track the Units received in the Target Account and once sighted, the fractional Units will be considered for Redemption as on the date of receipt of such fractional Units in the Target Account. 

5. The AMC/ Registrar will obtain the bank account details of the Unit holder from the Depository database and the Redemption proceeds for the fractional Units will be paid / credited to such bank account of the Unit holder. Please note the following: 

- Under this facility, the Unit holder can offer only fractional Units of the Scheme for buy back. Incase the Unit holder transfers whole Unit(s) then the same will be transferred back to the same demat account of the Unit holder from where the fractional Units were received. E.g. If the Unit Holder transfers 1.568 Units to the demat account of the Scheme, then 0.568 Units will be considered for Redemption and remaining one (1) Unit will be transferred back to

the demat account of the Unit holder from where the fractional Unit was received. 

The Redemption proceeds for the fractional Units will be paid to bank account of the Unit holder registered with the DP. 

Investors can also Redeem Fractional Units of the Scheme through the Mutual Fund Service System (MFSS) and the BSE Star MF platform/facilities provided by the NSE and BSE respectively 

Below mentioned the link (Liquid BeES) :

https://investeasy.nipponindiaim.com/rmfGsamnew/documents/FacilityforbuyingbackfractionalUnitsofLiquidBeES_new.pdf