1. What is Dematerialization of shares?
Dematerialization (or demat) is the process of converting
shares held in physical form into electronic form. Under
this process, the shares held by the shareholder in
physical form are converted into an equal number of shares
in electronic form and credited into the shareholder's
demat account maintained by him with his Depository
Participant (DP).
2. What are the benefits of Dematerialization?
Shares held in demat form have several benefits and helps
in eliminating many problems that shareholders face while
dealing with shares. Holding shares in demat form
minimizes paperwork that is involved with the ownership of
shares. It facilitates faster transactions and makes trade
of securities extremely convenient. There are a wide range
of benefits associated with holding securities in
dematerialization form such as:-
-
Facilitates buying / selling of shares through stock
exchanges
-
The risks pertaining to physical certificates like loss,
theft, forgery and damage are eliminated completely with
a demat account.
-
The lack of paperwork enables quicker transactions and
higher efficiency in trading including immediate
transfer of shares and faster settlement cycle.
- Ease in portfolio monitoring
3. How do I demat my shares?
Shareholders are requested to approach any Depository
Participant having registration with SEBI to open a Demat
account
You may visit website of the Depositories viz. NSDL or
CDSL for understanding about the demat procedure:
NSDL website:
https://nsdl.co.in/faqs/faq.php (dematerialisation)
CDSL website:
https://www.cdslindia.com/investors/open-demat.aspx
4. Whom should I inform the change in my address, bank
account details etc. in respect of shares held in demat
form?
As your demat account is maintained by your Depository
Participant (DP), all request/communication regarding
change in address, bank account details, ECS mandate,
registration of nomination etc. should be addressed to
your DP directly
5. I hold Company’s shares in physical form. How do I
transfer or sell these shares?
Pursuant to SEBI circular dated December 3, 2018 transfer
of shares in physical form is restricted effective from
March 31, 2019 except in case of transmission and
transposition. The shares can be sold and transferred only
once the shares are dematerialized.
6. Do I need to raise dematerialization request for
availing investor service in case my holding is in
physical form?
Pursuant to SEBI Circular dated January 25, 2022, all listed companies shall issue the securities in dematerialized form while processing the following service request:
- Issue of duplicate securities certificate
- Claim from Unclaimed suspense account
- Renewal/Exchange of securities certificate
- Endorsement
- Sub-division/Splitting of securities certificate
- Consolidation of securities certificate/folios
- Transmission
- Transposition
In case you are holder of physical securities, please submit duly filled Form ISR-4 and for the above services from c to h, you are also required to provide original securities certificate(s) in order to enable RTA to process your service request.
Our RTA will thereafter issue a “Letter of Confirmation” in lieu of physical securities certificate(s) within 30 days of receipt of service request by them. Letter of Confirmation will be valid for 120 days within which the securities holder/claimant is required to make a request along with the original letter or a copy of email with e-signature and/or digital signature, to the Depository Participant (“DP”).
7. What happens in case demat request is not raised within the aforesaid timelines?
In case of failure to submit demat request, RTA will credit the securities to the Suspense Escrow Demat Account of the Company.