Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of shares in electronic form and credited into the Demat account account with his Depository Participant ( NSDL or CDSL).
Step 1: DEMAT Registration (Obtaining ISIN)
Note: This process takes 4-5 working days if all documents are completed from the Applicant’s company Side.
Step 2: DEMAT Account and Request for DRF-Demat Request form.
Note: Share Holder should have DEMAT Account with the same Depository in which the Applicant Company takes its ISIN.
Note: This process takes 5-6 working days if all DEMAT Accounts of all shareholders are opened with CDSL / NSDLs DPs and ready for accepting DRF. We will take 5-6 Days for opening of new DEMAT Account with our Associates.
Step 3: Conversion of Physical Shares into DEMAT / Electronic Form.
Note: This process will take 1-2 Days if Confirmation is provided by the company.
Step 4: If any of the Share Holders want to Transfer their Demat Shares to another Demat Account Holder:
Note: Consideration Proof is required, Gift deed required in case of Gift and Transfer is taking 1 working day.
Stockify is the most trusted partner for Dematerialization of your physical shares. The charges including government fees is approximately INR 25,000 to 30,000 plus security deposit applicable for limited companies only.
Dematerialisation is an essential milestone for the Indian government, which means converting physical share certificates into electronic forms. It makes the entire trading process embrace digitisation, making it convenient, efficient, paperless, and smooth.
Dematerialisation has several perks, some of which are mentioned within:
On average, once you submit your request to RTA (Registrar and Share Transfer Agent), it takes 15-30 days to dematerialise the shares, i.e., to convert them into electronic format. You can easily trade shares in online space when the process is complete.
Depository is a facility that acts as a safe keeper of things, namely stocks, currencies, and securities. There are three types of depositories: Credit Unions, Saving institutions, and Commercial banks.
There are multiple benefits of availing depository services:
Dematerialisation is converting physical certificates to electronic bookkeeping, designed to offer more security and increase speed. Trading institutions require DEMAT accounts since they are the most accurate form of record keeping.
Primarily, the objective of dematerialisation of shares is to allow access to the securities market in order to trade. Since a DEMAT account is backed either by CDSL or NSDL, the account allows storing of the stocks while trading.
The SEBI (Securities and Exchange Board of India) has mandated that all trading and DEMAT account holders add a nominee until March 31, 2023, or the DEMAT account will be frozen.