Physical Share Means Holding Of Shares In Paper From Or In Certificate Form

Posted by Myfair Holidays on June 3rd, 2016

Many investors, specially senior citizens who continue to hold stocks in certificate form i.e Physical formare finding it difficult to convert into dematerialized form or are finding it tough to locate bonus stocks and break up of shares when such corporate movement takes place. The numbers are huge.

STEPS TO GET SHARES DEMATERIALISED:
Dematerialisation is the process by which a client can get Physical Certificates converted into electronic mode.
An investor intending to dematerialise its securities needs to have an account with a DP(Depository Participants). The client has to deface and surrender the certificates registered in its name to the DP. After intimating NSDL (National Securities Depository Limited) electronically, the DP sends the securities to the concerned Issuer/ R&T agent. NSDL in turn informs the Issuer/ R&T agent electronically, using NSDL Depository system, about the request for dematerialisation. If the Issuer/ R&T agent finds the certificates in order, it registers NSDL as the holder of the securities (the investor will be the beneficial owner) and communicates to NSDL the confirmation of request electronically. On receiving such confirmation, NSDL credits the securities in the depository account of the Investor with the DP.
• The client (registered owner) will submit a request to the DP in theDematerialisation Request Form (DRF) for dematerialisation, along with the certificates of securities to be dematerialized. Before submission, the client has to deface the certificates by writing “SURRENDERED FOR DEMATERIALISATION”.

• The DP will verify that the form is duly filled in and the number of certificates, number of securities and the security type (equity, debenture etc.) are as given in the DRF. If the form and security count is in order, the DP will issue an acknowledgement slip duly signed and stamped, to the client.The issuer/ R&T may reject dematerialisation request in some cases. The issuer or its R&T Agent will send an objection memo to the DP, with or without DRF and security certificates depending upon the reason for rejection. The DP/Investor has to remove reasons for objection within 15 days of receiving the objection memo. If the DP fails to remove the objections within 15 days, the issuer or its R&T Agent may reject the request and return DRF and accompanying certificates to the DP. The DP, if the client so requires, may generate a new dematerialisation request and send the securities again to the issuer or its R&T Agent. No fresh request can be generated for the same securities until the issuer or its R&T Agent has rejected the earlier request and informed NSDL and the DP about it.

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Myfair Holidays

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Myfair Holidays
Joined: June 2nd, 2016
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