Demat Mutual Fund Units

Mutual Funds are in transition mode : struck somewhere inbetween. Recent regulation by SEBI allowed MF Units to be held in demat mode. Here is a list of FAQ regarding the process and operations of MF's in demat mode.

We interacted with few clients. Following are some of their views:
1) Demated units will lose their transaction history: Right now in physical mode, you get the list of all the transaction done in a mutual fund folio. But under the new demat mode, only the units will be transmitted, not the transaction history.
2) Selling Demat MF's seem to be a cumbersome process (Refer Point number 18).

Looks like, we can wait for the system to stabilize before rushing for demating existing MF's.