How-to rematerialisation demat to folio

How to convert mutual fund units from demat to folio (rematerialisation)

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~4 min.

Key facts

Conversion direction	Demat (CDSL / NSDL) → Folio (SoA)
Process	Rematerialisation via RRF (Rematerialisation Request Form)
Use cases	Avoid demat AMC charges, simplify SoA-only operations, transfer to MFU/MF Central
Time	15-30 working days

Rematerialisation (demat → SoA / folio) is the reverse of dematerialisation. Useful for investors who want to exit demat-mode holdings and revert to folio operations, often to avoid annual demat AMC charges or to use the holdings via MFU / MF Central / CAMS / KFin AMC-direct operations.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC, broker, or depository. No affiliate commission is earned.

Step-by-step procedure

See the procedure infobox above.

When to consider rematerialisation

Scenario	Why folio mode
Closing broker / demat account	Move holdings to folio before closure
Avoiding ongoing demat AMC	Annual ~Rs 300/year fee
Using MFU / MF Central / CAMS direct	These primarily use folio-mode
Long-hold without trading	No need for demat features
Estate planning / family transfer	Some find folio simpler for nominee / transmission
Joint with non-demat holder	Joint folio possible (SoA)

Rematerialisation vs Dematerialisation

Aspect	Dematerialisation	Rematerialisation
Direction	Folio → Demat	Demat → Folio
Form	DRF	RRF
Issued by	AMC (post-process)	AMC (post-process)
Time	15-30 working days	15-30 working days
Cost	Free + demat AMC ongoing	Free; demat fees stop

When NOT to rematerialise

If actively trading or using broker-based pledge: keep demat.
If you have F&O margin needs: demat units needed.
If multiple consolidated holdings benefit: demat better.

Multiple-scheme rematerialisation

If multiple schemes in same demat: each requires separate RRF.

Folio creation

If you don’t have an existing folio at the AMC:

AMC creates new folio during rematerialisation.
New folio number issued.
Subsequent operations use this folio.

Holdings continuity

Aspect	Preserved
Unit count	Yes
Cost basis	Yes (FIFO)
Holding period	Yes (for capital gains)
AMC’s KYC link	Yes

The rematerialisation is operational; no tax event.

Joint holders

Rematerialisation:

Demat joint holders need all signatures.
Folio side: requires registering joint holders at AMC.
Standard process with appropriate documentation.

External references

References

SEBI (Mutual Funds) Regulations, 1996.
SEBI (Depositories and Participants) Regulations, 2018.
AMFI Best Practice Guidelines on rematerialisation.
CDSL / NSDL operational manuals.

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.