1. What do you mean by dematerialisation?
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 DP.
In order to dematerialise certificates; an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF], which is available with DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates.
2. Can I dematerialise any share certificate?
You can dematerialise only those certificates that are already registered in your name and are in the list of securities admitted for dematerialisation at NSDL or CDSL.
All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 3700 companies and is steadily growing. You can get an updated list of these of these companies from your DP or from NSDL's office or NSDL website at www.nsdl.co.in
3. What precautions should I take before defacing a share certificate?
Before defacing the share certificates, you must ensure that it is available for dematerialisation. You must therefore check with your Depository Participant (DP) whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking "Surrendered for Dematerialisation" on the face of the certificate. The diagram given below shows the proforma of a defaced certificate.
4. How long do the dematerialisation process take?
Dematerialisation will normally take about 30 days.
5. What if it takes more than 30 days for dematerialisation of the shares?
If the process of dematerialisation takes more than 30 days, please contact your DP. If he is unable to help you, than you may send your grievance to:
The Officer in Charge
Investor Grievance Cell
National Securities Depository Limited
4th Floor, Trade World, Kamala Mills Compound, Senapati Bapat Marg
Lower Parel, Mumbai - 400 013