How does the user not see the portfolio / face the issue?

The client is unable to place withdrawal requests for certain mutual fund schemes despite COB being completed to Angel One. The app throws error messages when the client tries to initiate SW or Withdrawal request. In some cases, SW was completed but the withdrawal option showing as disabled.

When does this arise?

This issue can arise after broker details are updated but the units are still linked to the earlier account or are not reflected correctly in the investment records. It may also happen if the holding mode is not mapped correctly.

Primary Scenario (ICICI Demat Account – 4 Schemes) COB was processed and broker code was updated to Angel One. However, units were not transferred from the client's ICICI Demat account to Angel One Demat account. Since units are not held in Angel One Demat, any withdrawal or SW transaction from Angel One platform gets rejected due to absence of units. Edge Case Scenario (Kotak Fund – Physical Mode Mismatch) COB processed for a Kotak scheme, but the folio was actually in Physical mode, not in Demat. However, in Dion, it was incorrectly marked as DP, so Spark app tried to treat it as a DP folio. Since there were no units in Angel One Demat, the client was unable to place the withdrawal request. Once the folio was corrected to Physical mode in Dion, the client was able to initiate the redemption successfully.

What action does the user need to take?

For Demat Mode Folios Client must submit a DIS slip to initiate DP-to-DP transfer of units from ICICI Demat to Angel One Demat account. Until the units reflect in Angel One’s Demat account, no transaction (Withdrawal/SW) will go through from Angel One platform. For Incorrect DP Mapping (like Kotak MNC Fund) If a folio is mistakenly marked as DP in Dion but is actually in Physical mode: WMS OPS team will verify with RTA and check for unit availability in Angel Demat. If no units found, update Dion mode to Physical, enabling the client to transact.

How do I change from one broker to another?

You can change from one broker to another by submitting a broker change request and completing the required transfer formalities for your holdings. Depending on how the investments are held, additional transfer steps may be needed before transactions become available.

Can I change brokers without selling in India?

Yes, investors can generally change their broker without selling their investments. The process usually involves updating broker details and transferring holdings where applicable, allowing investments to remain invested during the transition.

Can I transfer brokerage without selling?

Mutual fund investments can be shifted between distributors (in SOA mode) or between Demat accounts without requiring redemption. However, the process involves updating distributor mapping or executing off-market transfers, depending on the holding mode.

Is it hard to change brokers?

Changing brokers is usually a structured process when the required documents and transfer steps are completed correctly. Understanding the movement of holdings and account mapping can help avoid delays and make the transition smoother.

What is Change of Broker (COB)? Process & Impact

As per SEBI and AMFI guidelines, what is commonly referred to as a “Change of Broker (COB)” in mutual funds is formally known as a Change of Distributor (ARN change) for investments held in Statement of Account (SOA/physical mode). This process updates the distributor code linked to a folio but does not change ownership of units.

A Change of Distributor (ARN) applies only to mutual fund investments held in SOA mode. It does not apply to Demat holdings. For Demat investments, visibility and transaction capability depend entirely on the Demat account where the units are held, not on distributor mapping.

Key Takeaways

A Change of Distributor applies only to Regular Plan folios held in SOA mode.

Missing portfolios or blocked transactions can occur when holdings are not correctly mapped, transferred (in case of demat units), or identified under the correct holding mode.

Change of Distributor (ARN) is applicable only to regular plans. Direct plans do not have distributor mapping and hence cannot undergo ARN change.

A Change of broker (ARN change) does not impact the NAV, taxation, holding period, or ownership of mutual fund units.

Why Your Mutual Fund Portfolio May Not Show After a Broker Transfer (COB)

The Problem: Missing Portfolio or Blocked Withdrawals

Even after completing the COB to Angel One, some investors face the following issues:

Certain mutual fund schemes are not visible in the app

Withdrawal or switch options are disabled or result in an error

In some cases, even after a switch is processed, the withdrawal remains blocked

These situations can be frustrating, especially when the COB appears to have gone through.

When Does This Happen?

These issues typically arise when the investment is held in a different mode than the platform expects. For example:

The units may still be lying in the earlier Demat account.

The Demat transfer may not have been completed.

A physical or SOA holding may have been incorrectly treated as Demat.

In such cases, the platform may look for the units in the wrong place and fail to reflect them correctly.

Note: Mutual fund units held in demat form are governed by SEBI depository regulations and are maintained with depositories such as NSDL and CDSL, whereas SOA holdings are maintained by the AMC or its Registrar and Transfer Agent (RTA).

Also Check Out: Mutual Fund Plans Online in India

How Does This Happen?

Let’s walk through a few real scenarios:

Case 1: Units still held in the previous broker’s Demat account

The distributor update or account modification may have been completed, but the actual mutual fund units may still remain in the earlier Demat account if a separate transfer instruction was not executed.

As a result, the units do not appear in the updated account, and transaction attempts may fail until the transfer is completed.

Case 2: DIS Submitted but transfer process not completed

This can happen when an investor submits a Delivery Instruction Slip (DIS) but the instruction is not executed or validated by the Depository Participant (DP).

A DIS must be correctly filled, matched with depository records, and processed within validity timelines.

If the instruction is rejected, expired, or not processed, the mutual fund units will remain in the existing demat account.

Case 3: Folio in physical mode treated as Demat

In some cases, a mutual fund folio that is actually held in physical or SOA mode may be incorrectly identified as Demat.

The app then tries to locate the units in a Demat account, finds nothing, and blocks the redemption or switch request.

Once the holding type is corrected, transactions can proceed normally.

What Should You Do?

Here are the appropriate actions based on how your mutual fund units are held:

If units are still held in the previous demat account

Submit the required transfer request through your Depository Participant to move the mutual fund units from the earlier Demat account to the updated one.

Also complete any supporting formalities and keep the acknowledgement for reference.

Until the transfer is completed and the units appear in the linked Demat account, redemption or switch requests may not go through.

If the investment Is in physical mode

If the app shows the units as unavailable but you know the investment is not in Demat form, it may be a classification issue.

In such cases, the holding type should be verified with the registrar and transfer agent.

Once the folio is correctly identified as physical or SOA mode, the system should reflect it properly and redemption requests can usually be placed without issue.

Also Read About: What happens if your Delivery Instruction Slip gets Rejected?

Other Scenarios to Be Aware Of

Folio is in Physical Mode But Treated as Demat

Incomplete or incorrect data from the RTA may cause folios to be wrongly identified. If this happens, the app expects to find units in the Demat account, and when it does not, it blocks the transaction. Once the folio is correctly recognized as Physical, you can proceed with redemptions.

Units Not Transferred Despite COB Completion

A common misconception is that completing COB also transfers the units. In reality:

A Change of Broker request updates the applicable broker mapping or servicing details for eligible investments

The actual transfer of units may require separate transfer instructions, depending on how the holdings are maintained

Additional transfer formalities or supporting documents may be required before the transfer is completed

If the required transfer steps are not completed, the units may remain linked to the earlier account and may not appear in the updated portfolio view.

Note: In some cases, mutual fund folios may become inactive due to lack of transactions or incomplete KYC compliance. As per SEBI’s latest KYC norms, investors must have a “KYC Validated” status to carry out transactions without restrictions. Investors with “KYC Registered” or “KYC On Hold” status may face limitations until validation is completed through a KYC Registration Agency (KRA).

Required Documents

Here are some of the key documents you will need:

Duly filled and signed Change of Distributor (ARN) request form

PAN card copy (mandatory as per SEBI KYC norms)

Valid KYC status (KYC Registered/Validated)

Folio details or latest account statement

Signatures of all unit holders (as per holding mode)

Step-by-Step Process

As per industry practice, ARN change requests are typically processed within 3–10 working days, subject to document verification and RTA processing timelines. Here’s a step-by-step process:

Obtain the Change of Distributor (ARN) request form from the AMC, RTA, or official submission channel.

Fill in folio number(s), scheme details, and existing and new distributor ARN details.

Ensure signatures of all holders match the mode of holding (single, joint, anyone/survivor).

Attach required documents, including PAN and KYC-compliant details.

Submit the request through the prescribed mode (online or physical submission).

Retain acknowledgement for tracking the request status.

Note: As per AMFI's updated guidelines (effective August 11, 2025), after a COB request is submitted, the RTA will send an SMS alert to the investor's registered mobile number on the next working day. Investors who did not initiate the request must raise an objection with the RTA within 3 days. If no complaint is received within 11 days, the ARN change will be processed automatically. The COB application form must bear wet (physical) signatures of both the investor and the new distributor.

Also Read About: What is a Stock Broker?

RTA Process

After receiving the request, the AMC or RTA may share an update or acknowledgement with the investor as part of the review process. Once the review process is completed and all requirements are met, the request may be processed and confirmation may be shared through the available communication channels.

Important Notes

Documentation requirements may vary depending on the investment provider and the type of request.

Requests with incomplete signatures or mismatched details may be rejected.

If the investment has restrictions or lock-in conditions, processing may depend on the applicable terms.

A new distributor is not eligible to receive trail commission on transferred assets for 12 months from the date of the ARN change. If the investor changes back to the original distributor within this period, the 12-month clock resets.

Also Read About: Discount Broker Vs Full-service Broker

Conclusion

A Change of Distributor (ARN change) updates the servicing rights of a mutual fund folio but does not move or remap the actual units across holding modes. Investors may face visibility or transaction issues if units remain in a different Demat account or if the holding mode is incorrectly identified.

Verifying the holding structure through CAS, ensuring proper transfer of Demat units, and confirming folio classification with the RTA are essential steps to ensure seamless access and transaction capability.

Turn insights into action - Open Free Demat Account with Angel One and start investing instantly.

Understanding Change of Broker (COB)