Indian stock markets may have moved from physical shares to demat shares long back. More than 95% of all equity holdings are in demat form and 100% of the settlement on the BSE and the NSE takes place in demat form. That means; if you have either bought physical shares long back or inherited physical share certificates or if you have received them as a gift, then it is essential for you to dematerialize them. In fact, today it is much easier and more economical to sell shares in demat. But a lot of you may be worried about the process, in which case you only need to reach out for your phone and speak to us at Religare Broking. But first, let us understand the process of dematerialization of physical shares…

Process of dematerialization of shares…

Dematerialization is the process of converting your physical shares into dematerialized (electronic) shares. For that, you need to go through the following steps.

1. You need to open a Demat account with a DP like Religare Broking and submit the Demat Request Form (DRF) along with the share certificates. Before you submit the certificates to your DP, make it a point to deface the certificates by writing “SURRENDERED FOR DEMATERIALIZATION”. Before that just ensure that the stock is already admitted to demat and that the names on the certificate match exactly with the demat account holder’s name.

2. Each share has a unique ISIN number so ensure that for each ISIN you fill up a separate DRF. If you have 12 ISINs in physical form then you need to fill up 12 DRFs. Otherwise, your DRF will get rejected.

3. The next step is DP scrutiny. The DP will scrutinize and verify the client signature in the DRF matches with the DP account as well as the paid-up status and the lock in status of the shares.

4. In case the share certificates and the DRF are in order in all respects, the DP will then upload the form with details in the DPM software provided by NSDL or CDSL (the principal depositories). Once this is done the Demat Request Number (DRN) is generated, which you must keep safely till you get your demat credit.

5. The request will then be forwarded by the Depository Module of NSDL or CDSL directly to the Registrar & Transfer Agent who maintains the record of shareholders. The RTA will then check with the original signature in the company master record and also verify that the certificates are not duplicate or fake or mutilated in any respect.

6. Once the RTA finds the DRF to be perfect in all respects, then the DP will be intimated electronically and authorize the creation of appropriate credit balances.

7. Once the DP receives the authorization from the RTA via the electronic system, then the DP will credit your demat account with the equivalent number of shares. That completes the process and from that point you are free to either transfer these shares into another demat account or even to sell these shares in the market.

Having understood the process of dematerializing your physical shares you also need to know that if all the specs are fine then the entire process takes around 20-25 days from start to finish. But you would be much better off if you are supported by a friendly depository participant (DP) to guide you through the process. That is where Religare Broking must be your DP partner for more reasons than one.

Why select Religare as your preferred DP choice?

There are a few compelling reasons for you to partner with Religare in opening your demat account:

• Apart from demat account opening, you get the added benefit of free annual maintenance charges for the first year.

• You can open a trading-cum-demat account with Religare Broking and opt for our Instant Discount Plan (IDP), which allows you to buy and sell shares at a steeply discounted rate of brokerage by paying an advance deposit of brokerage.

• Religare trading and DP are largely platform agnostic, which means you can access through the internet, mobile, smart phones, note pads and also via app.

• Lastly, if you opt to convert shares by opening your demat account with Religare, then you get an additional Rs.500 as brokerage cash back.

In a nutshell, the Religare Dematerialization offer could be your ticket to wealth creation through equities. Welcome to the world of demat and equity trading.

Click here to apply for your free Demat and Trading account.