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CAPITAL MARKET

DEMATERIALISATION & REMATERIALISATION

Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into investor’s account with his/her Depository Participant

How can one convert physical holding into electronic holding i.e. how can one dematerialise securities?
In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN no.. The complete process of dematerialization is outlined below:

 Bullet Surrender certificates for dematerialization to your depository participant.

 Depository participant intimates Depository of the request through the system.

 Depository participant submits the certificates to the registrar.

 Registrar confirms the dematerialization request from depository.

 After dematerializing certificates, Registrar updates accounts and informs depository of the completion of dematerializations.

 Depository updates the accounts and informs the depository participant.

 Depository participant updates the accounts and informs the investor.

What is the ISIN?
ISIN (International Securities Identification Number) is a unique identification number for a security.

Can odd lot shares be dematerialized?
Yes, odd lot share certificates can also be dematerialized.

Do materialized shares have distinctive numbers?
Dematerialized do not have any distinctive numbers. These shares are fungible, which means that all the holdings of a particular security will be identical and interchangeable.

Can Transfer Cum dematerialization be done simultaneously?
Yes. After the company/registrar has transferred the shares in ones name they will request one to let them know whether one wishes to receive them in electronic mode. In case one opts to receive in electronic mode one should inform the company / registrar through ones DP within 3o days of the date of option letter failing which company or registrar can dispatch the certificates and the securities shall be credited to ones account. This facility is offered only for those scripts for which the issuer company has agreed to provide this facility.

Can ones electronic holdings be converted back into physical certificates?
Yes. The process is called Rematerialisation. If one wishes to get back your securities in the physical form one has to fill in the RRF form (Remat Request Form) and one request your DP for rematerialisation of the balances in your securities account. The process of rematerilisation outlined below:

One makes a request for rematerialisation.

Depository Participant intimates depository of the request through the system.

Depository confirms rematerialisation request to the registrar.

Registrar updates accounts and prints certificates.

Depository updates accounts and downloads details to depository participant.

Registrar dispatches certificates to the investor.

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