Dematerialisation of shares
This query is : Resolved
05 November 2011
Can any one guide on process of dematerialisation of Shares of unlisted Company?.
05 November 2011
One has to open an account with a Depository Participant (DP) by filling up an Account Opening Form and signing a “Participant-Client Agreement”. Then a unique client ID number will be given, which must be quoted in all correspondence with the DP.
Thereafter, one has to fill up and submit a Dematerialization Request Form (DRF) provided by the DP duly signed by all the holders and surrender the physical shares intended to be dematted to the DP.
The DP upon receipt of the shares and the DRF will issue an acknowledgement and will send an electronic request to the Company/ Registrars and Transfer Agents of the Company through the Depository for confirmation of demat. The DP will simultaneously surrender the DRF and the shares to the Company / Registrars and Transfer Agents of the Company with a covering letter requesting the Company to confirm demat.
The Registrars and Transfer Agents of the Company, after necessary verification of the documents received from the DP, will cancel the physical shares and confirm demat to the Depository. This confirmation will be passed on by the Depository to the DP which holds investor’s account. After receiving this confirmation from the Depository, the DP will credit investor account with the number of shares dematerialized. The DP will hold the shares in the dematerialized form thereafter on behalf of the investor. And hence one becomes the beneficial owner of these dematerialized shares.
When the beneficial owner submits the shares for dematerialization, his DP will deface the share certificates with the stamp “SURRENDERED FOR DEMATERIALISATION”. This ensures that shares are not lost in transit or misused till credit is received in demat account.
Thereafter, one has to fill up and submit a Dematerialization Request Form (DRF) provided by the DP duly signed by all the holders and surrender the physical shares intended to be dematted to the DP.
The DP upon receipt of the shares and the DRF will issue an acknowledgement and will send an electronic request to the Company/ Registrars and Transfer Agents of the Company through the Depository for confirmation of demat. The DP will simultaneously surrender the DRF and the shares to the Company / Registrars and Transfer Agents of the Company with a covering letter requesting the Company to confirm demat.
The Registrars and Transfer Agents of the Company, after necessary verification of the documents received from the DP, will cancel the physical shares and confirm demat to the Depository. This confirmation will be passed on by the Depository to the DP which holds investor’s account. After receiving this confirmation from the Depository, the DP will credit investor account with the number of shares dematerialized. The DP will hold the shares in the dematerialized form thereafter on behalf of the investor. And hence one becomes the beneficial owner of these dematerialized shares.
When the beneficial owner submits the shares for dematerialization, his DP will deface the share certificates with the stamp “SURRENDERED FOR DEMATERIALISATION”. This ensures that shares are not lost in transit or misused till credit is received in demat account.
05 November 2011
Thanks Shreya.
05 November 2011
Dear Vijay
please ensure that the unlisted company has created ISIN with NSDL first...if it has already done that then the steps suggested by Shreya will follow..
Regards
Yogesh
please ensure that the unlisted company has created ISIN with NSDL first...if it has already done that then the steps suggested by Shreya will follow..
Regards
Yogesh
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