1) What is Dematerialisation ?
A: Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and Credited in the investor’s account with his Depository Participant (DP).
In order to dematerialise certificates, an investor will have to first open a Depositary Account and then request for the dematerialization of his certificates by filling up a Dematerialisation Request Form ( DRF ).
2) What are the benefits of opening Depositary Account ?
A: a) Speed:
i ) Elimination of postal delays
ii ) Elimination of fake, forged, counterfeit and intercepted transfer documents and certificates.
i ) Elimination of bad deliveries, and
ii ) Elimination of loss of certificates in transit
i ) Elimination of filling of transfer deeds and affixing of share transfer stamps.
ii ) Almost immediate ownership of securities on settlement.
d) Savings :
i ) There is no stamp transfer duty payable on shares transferred in dematerialisation form. These are instantly credited to your account after settlement.
3) Can I dematerialization any share certificates ?
A: You can dematerialise only those certificates that are :
a) Registered in your name , and
b) Belong to the list of securities admitted for dematerialisation at NSDL. Several blue chip companies have already joined NSDL. This list is steadily growing and you can get an updated list of these companies from NSDL.
4) How long does the dematerialisation process take ?
A: Dematerialisation normally takes about 15 days. However, this may take longer if the number of certificates submitted is very large.
5) Do my dematerialized shares have distinctive / certificate numbers?
A: No. Your dematerialised shares do not have any. Which means that 100 demat Shares of a security are the same as any other 100 shares of that security.
6) Can I dematerialise odd lot shares ?
A: Yes. Odd lot share certificates can also be dematerialised.
7) Can I partly dematerialised my shareholding ?
A: Yes. The shareholding can be dematerialised either fully or partly as desired.
8) Do I get my original share certificates ?
A: No. On dematerialisation, the share certificates are cancelled and you will not receive the same share certificates on rematerialisation. The shares, represented by dematerialised share certificates, are fungible and therefore, certificate numbers and distinctive numbers become irrelevant.