Compulsory Demat of Physical Shares
Attention of shareholder's holding shares in physical form
This is in reference to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Listing Obligations and Disclosure Requirements) (Fourth Amendment) Regulations, 2018 vide their Notification No. SEBI/LAD-NRO/GN/2018/24 dated 08th June, 2018 which shall come into force on the one hundred and eightieth day from the date of its publication in the Official Gazette.
According to the aforesaid Circular, the requests for effecting transfer of shares shall not be processed after 05th December, 2018 unless the securities are held in dematerialized form. The said regulation shall not affect the process of transmission and transposition of shares. Hence, the members holding their shares in physical form are requested to dematerialize their securities before 05th December, 2018. The process of dematerialization is given below:
Process of dematerialization
- Dematerialization starts with opening a Demat account. For demat account opening, you need to shortlist a Depository Participant (DP) that offers Demat services.
- To convert the physical shares into electronic/demat form, a Dematerialization Request Form (DRF), which is available with the Depository Participant (DP), has to be filled in and deposited along with share certificates. On each share certificate, ‘Surrendered for Dematerialization’ needs to be mentioned.
- The DP needs to process this request along with the share certificates to the Company and simultaneously to registrar and transfer agents through the depository.
- Once the request is approved, the share certificates in the physical form will be destroyed and a confirmation of dematerialization will be sent to the depository.
- The depository will then confirm the dematerialization of shares to the DP. Once this is done, a credit in the holding of shares will reflect in the investor’s account electronically.
In case of any query regarding dematerialisation, shareholders may write to mkexim@gmail.com