FAQs on Dematerialization of Units

What is Demat?

A demat account is an Indian term for a dematerialized account that holds financial securities digitally and to trade shares in the share market.

In India, demat accounts are maintained by two depository organizations: the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL).

What is Dematerialization?

Dematerialization is the process by which physical certificates of an Investor are converted to an equivalent number of securities in electronic form and credited into the Investor’s account with his Depository Participant (DP).

What is required to be done in case of discrepancy in the Nominee/ Bank details provided to us earlier against what is reflecting in your CML?

By regulatory mandates, the Nominee & Bank details in your demat account should be same as in the fund records. In case they are different, we enable you to change the details at the fund level, by submitting a form to update the same in the fund records. Please reach out to us at investor.relations@silverneedle.vcin case of any queries/requirements. Please note you can change details at your DP level as well, but for that you will need to get in touch with your DP.

What is required to be done if there is no Nominee in the CML?

In case of no Nominee in the CML, Investor can also opt out of Nomination in the Fund by signing the updated Nomination Form attached with this email.

What is required to be done in case of Joint Holdings in CML?

In case of Joint holdings in CML, Investor can update their holding in the Fund details by letting us know and we shall initiate process of signing the Addendum to Contribution Agreement.

What is required to be done in case of No Demat Account?

If investors do not hold any Demat Account- we request them to open a Demat Account with a DP at the earliest.

Why the Bank Account details in the Fund and in the CML should be same?

Anti Money Laundering (AML) regulation mandates the same bank details provided shall be used to honour all drawdowns made by the Fund to prevent money laundering.

Further, all the distribution from redemption of investment proceeds will be done in the bank account linked with your CML.

What is the Implication on non-receipt of CML?

If the demat account details are not provided in due time, the units shall be temporarily credited in Aggregate Escrow Demat Account maintained by the Fund. But this is not a preferred route and eventually you need to have a demat account for the fund to be able to distribute the funds.

SEBI mandated (https://www.sebi.gov.in/legal/circulars/dec-2023/credit-of-units-of-aifs-in-dematerialised-form_79774.html) Funds to complete the dematerialization for all its Investors.