Se­cu­ri­ties with lock-in pe­ri­ods

Consumer Voice - - Demat Account -

Some in­stru­ments, es­pe­cially tax-sav­ing in­fra­struc­ture bonds or eq­uity-linked sav­ings scheme (ELSS) funds, come with lock-in pe­ri­ods and can­not be di­rectly trans­ferred to another de­mat ac­count. How­ever, there is a way out. The se­cu­ri­ties with lock-in pe­ri­ods can be trans­ferred only by the is­suers. To get them trans­ferred, the ac­coun­tholder will have to first get these in­stru­ments re­ma­te­ri­alised. Once they are con­verted to phys­i­cal cer­tifi­cates, you can hold them as phys­i­cal shares or units or get them de­ma­te­ri­alised again in another de­mat ac­count. Note that this is pos­si­ble only if the se­cu­rity owner and the de­mat ac­coun­tholder are the same per­son. Sim­i­larly, if you have taken a loan against se­cu­ri­ties in your de­mat ac­count (pledged shares), you can­not trans­fer them with­out the len­der's per­mis­sion.

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