There are several occasions when you need cash urgently and may want to liquidate your existing investments. It may be for an overseas holiday or to buy a house or for a medical emergency. Here is a brief on how to go about liquidating your investment and the possible time frames needed to do the same.
Your mutual fund sends you a hard copy of the statement. The bottom part of it is a perforated transaction slip. You need to fill in the transaction slip and tick the relevant particulars in redemption form and submit it to any of the registrar’s office or office of the Asset Management Company before 3 pm. They will acknowledge the same with a time stamp. If things are in order, and you have filed all needed particulars, your cheque shall be ready within T+2 working days. If you have mandated a direct credit in your account, the funds shall be credited into your account. Else, a cheque will be couriered to your residence. it may take your bank to clear the cheque and realise the amount. All in all, it could take 7-10 days for you to realise your funds, if you do opt to get a redemption cheque. If it is direct credit, it could work out much faster.
When you wish to sell a share, you need to call a broker with whom you have a securities trading account. You could place a ‘sell’ order with him. Once the order is executed, you need to deliver the shares to your brokers account by filling in an demat transaction slip on the next day. On the pay in day you are eligible to get a cheque for the sale of your shares from your broker. That means if you sell your shares on Monday, typically you will get your cheque on Wednesday. If you deposit the cheque in your bank account on Thursday, you will get cash by Friday night or Saturday morning. In case you have an online bank account, the funds shall be credited in your account by Wednesday night itself. So all in all it could be 3-6 days to realise credits into your account.
POSTAL SAVINGS SCHEMES
In case of a (NSC), you must hand over the certificate, duly signed by the unit holders to the respective post office, a week before the maturity date (six years from the date of investment). In some cases, post offices might have to process such certificates through their head office, and hence would take 3-5 days for the same. So it is necessary to tender the certificate a week in advance. Once the application is processed the cheque for the amount due, will be given to you on maturity.
COMPANY FIXED DEPOSITS
You could send the receipt duly signed to the company about a week before the maturity date. The company should be able to credit the amount in your bank account directly on the due date or courier a cheque to you so as to reach you before the maturity date.
BANK FIXED DEPOSITS
It is easy to liquidate an FD if you have a savings bank account with the same bank. Just walk into the bank branch with your fixed deposit receipt (FDR) on the maturity date and the proceeds will be immediately transferred to your savings account.