1. What exactly is 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 Depository Participant [DP]. In order
to dematerialise his certificates, an investor first has to open an account with a
Depository Participant. He then has to request for the dematerialisation of his
certificates by filling up a dematerialisation request form [DRF], which is
available with his DP.
2. Is dematerialisation compulsory?
No. According to the Depositories Act, 1996, an investor has the option to hold
shares either in physical or in dematerialised form.
3. Which share certificates can I dematerialise?
You can dematerialise only those certificates that are already registered in
your name and belong to the list of securities admitted for dematerialisation at
NSDL. Shares held in street name (blank transfers) cannot be dematerialised. A
number of 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 process of dematerialisation take?
Dematerialisation normally takes about 30-45 days.
5. Do dematerialised shares have distinctive/certificate numbers?
No. Your dematerialised shares do not have any distinctive or certificate
numbers. These shares are fungible - which means that 100 shares of a security
are the same as any other 100 shares of that security.
6. Can odd lot shares be dematerialised?
Yes. Odd lot share certificates can also be dematerialised.
7. Can I partly dematerialise my shareholding?
Yes. The shareholding can be dematerialised either fully or partly as desired.
8. What are the benefits of dematerialising the share certificate?
When the shares are brought through the Depository System, the shares are
This rules out problems like bad delivery, fake certificates, shares und