Dematerialization Of Shares - All You Need To Know
Dematerialization of shares
Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of shares in electronic form and credited into the Demat account account with his Depository Participant ( NSDL or CDSL).
There are three Steps for converting Physical Shares into DEMAT / Electronic forms after DEMAT Registration.
- DEMAT Registration: Demat Registration means that Company has to register itself with CDSL / NSDL by Appointing RTA-Registrar and Share Transfer Agents who will record and maintain all the data related to Share Holders and Paid Up capital of the company and RTA provides services related to Security Dematerialization, Capital Allotment, Transfer, Transmission and Transposition of Securities and provide the Reconciliation and other reports time to time.
- DEMAT Account and Request of DRF: It is the process of Opening a DEMAT Account with a Depository Participant of CDSL / NSDL and Sending a request for DRF-Demat Request form to the Depository Participant. In cases where their Share Holders have their Existing DEMAT Account, they have to send the DRF-Demat Request form to Depository Participant for Conversion of Securities into DEMAT / Electronic Form.
- Conversion of Physical Shares into DEMAT / Electronic Form: It is the process by which RTA-Registrar and Share Transfer Agent will Accept or Reject (In case of any Discrepancies) the request sent by the Depository Participant and Share will directly send to Share Holder’s Demat Account in Electronic / DEMAT form by RTA.