1. What is dematerialisation of shares?

Dematerialisation of shares is the process by which shares held by the shareholder in physical form are converted to electronic form and credited to the demat account of the shareholder maintained with the Depository Participant.

 

2. How can one convert shares held in physical form into electronic form i.e. how can one dematerialise shares?

In order to dematerialise physical shares, one has to open demat account with the DP and fill in a DRF (Dematerialisation Request Form) which is available with the DP and submit the same along with physical share certificate(s) that is/are to be dematerialised.



The complete process of dematerialisation is summarized below:

  • Surrender share certificate(s) for dematerialisation to your DP.
  • DP intimates to the Depository regarding the request through the system.
  • DP submits the share certificate(s) to the RTA of the Company.
  • RTA confirms the dematerialisation request from depository.
  • After dematerialization of shares, RTA updates accounts and informs Depository regarding completion of dematerialisation.
  • Depository updates its accounts and informs the DP.
  • DP updates the demat account of the shareholder.

 

3. Can electronic shares be converted into physical shares?

Yes. The process is called rematerialization. If one wishes to hold his/her shares in the physical form he/ she has to fill in the RRF (Remat Request Form) which is available with the DP and request his/her DP for rematerialisation of shares held in his/her demat account.



The process of rematerialisation is outlined below:

  • Make a request for rematerialisation.
  • DP intimates depository regarding the request through the system.
  • Depository confirms rematerialisation request to the Registrar.
  • Registrar updates accounts and prints share certificates.
  • Depository updates accounts and downloads details to depository participant.
  • Registrar dispatches share certificates to shareholder.