Restatementization

Mutual fund units can move into electronic form through De-statementization. They can also come back out. That reverse trip is Restatementization.

A unit-holder who wants his electronic mutual fund holding back on paper — as a fresh Statement of Account or certificate — asks for it through his DP, on a Restatementization Request Form (MF-RRF). The DP does not decide whether to allow this. It only processes the paperwork and passes the request on to the fund's AMC or RTA.

From Chapter 7, section 7.6: the BO fills the MF-RRF in duplicate; all joint holders sign it, and a POA holder may sign only if that POA is registered with the AMC/RTA. Separate entries are set up for free units and for each lock-in reason/expiry-date combination. The BO may request the entire holding by marking the quantity "ALL," or a specific partial or full quantity.

The DP captures the details and the system generates a Restat Request Number (RRN) — a number the AMC/RTA accesses electronically, and which the workbook uses for an entirely different number a few pages earlier, when an ordinary equity RRF generates its own "remat request number (RRN)." The AMC/RTA may then confirm or reject the entire balance available at confirmation, or a partial balance. A restat request cannot be modified once set up — only deleted, and only if the AMC/RTA has not yet downloaded it; if the request was set up in error, the BO must authorise its deletion. The DP must follow up with the AMC/RTA if the request is not honoured within 30 days, keeping that follow-up on record. On repurchase or redemption instead of restat, the AMC/RTA pays the BO directly and the units held are expunged.

Mrs Iyer holds mutual fund units worth Rs 3,20,000 electronically and wants them back as a paper Statement of Account. She fills the MF-RRF in duplicate and hands it to her DP, marking the quantity "ALL." Her DP enters the request, and the system generates Restat Request Number 7734 against her ISIN.

Thirty-five days later, the AMC still has not honoured the request. Because the workbook's 30-day limit has already passed, the DP is required to follow up with the AMC and keep that follow-up on record. Had Mrs Iyer instead wanted only half her holding restated, she would have entered that specific quantity on the form rather than marking it "ALL."

Chapter 7, section 7.6, sets out Restatementization directly after De-statementization in section 7.5 — the two mirror each other. Expect a question distinguishing which direction is which, on the 30-day follow-up trigger, and on the "modification not allowed, deletion allowed" rule for a live restat request.

• Restatementization goes electronic-to-paper; De-statementization goes paper-to-electronic — easily reversed under exam pressure.
• A restat request cannot be modified once set up — only deleted, and only before the AMC/RTA downloads it.
• The workbook's "RRN" here means Restat Request Number, not the Rematerialisation Request Number generated for an ordinary equity RRF — the same three letters, two different numbers, in the same chapter.