Home : Services : Basic Services : Dematerialisation

Dematerialisation is the process by which a client can get physical certificates converted into electronic balances.

An investor intending to dematerialise its securities needs to have an account with a DP. The client has to deface and surrender the certificates registered in its name to the DP. After intimating NSDL electronically, the DP sends the securities to the concerned Issuer/ R&T agent. NSDL in turn informs the Issuer/ R&T agent electronically, using NSDL Depository system, about the request for dematerialisation. If the Issuer/ R&T agent finds the certificates in order, it registers NSDL as the holder of the securities (the investor will be the beneficial owner) and communicates to NSDL the confirmation of request electronically. On receiving such confirmation, NSDL credits the securities in the depository account of the Investor with the DP.

• Holdings in only those securities that are admitted for dematerialisation by NSDL can be dematerialised.
• Only those holdings that are registered in the name of the account holder can be dematerialised.
• Names of the holders of the securities should match with the names given for the demat account.
• If the same set of joint holders held securities in different sequence of names, these joint holders by using 'Transposition cum Demat facility' can dematerialise the securities in the same account even though share certificates are in different sequence of names. e.g., If there are two share certificates one in the name of X first and Y second and another in the name of Y first and X second, then these shares can be dematerialised in the depository account which is in any name combination of X and Y i.e., either X first and Y second or Y first and X second. Separate accounts need not be opened to demat each share certificate. If shares are in the name combinations of X and Y, it cannot be dematerialised into the account of either X or Y alone.
• Check the demat performance of the companies whose shares are to be given for dematerialisation.
• Demat requests received from client (registered owner) with name not matching exactly with the name appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, can be processed, provided the signature of the client on the Dematerialisation Request Form (DRF) tallies with the specimen signature available with the Issuers or its R & T agent.
• A client may, in the normal course, receive demat confirmation in about 30 days from the date of submission of demat request to the DP.
• There are special processes for Securities issued by Government of India and simultaneous transmission and demat.

• The client (registered owner) will submit a request to the DP in the Dematerialisation Request Form for dematerialisation, along with the certificates of securities to be dematerialised. Before submission, the client has to deface the certificates by writing "SURRENDERED FOR DEMATERIALISATION".
• The DP will verify that the form is duly filled in and the number of certificates, number of securities and the security type (equity, debenture etc.) are as given in the DRF. If the form and security count is in order, the DP will issue an acknowledgement slip duly signed and stamped, to the client.
• The DP will scrutinize the form and the certificates. This scrutiny involves the following
  • Verification of Client's signature on the dematerialisation request with the specimen signature (the signature on the account opening form). If the signature differs, the DP should ensure the identity of the client.
  • Compare the names on DRF and certificates with the client account.
  • Paid up status
  • ISIN (International Securities Identification Number)
  • Lock - in status
  • Distinctive numbers
  • A single DRF is used to dematerialise securities of more than one company.
  • The certificates are mutilated, or they are defaced in such a way that the material information is not readable. It may advise the client to send the certificates to the Issuer/ R&T agent and get new securities issued in lieu thereof.
  • Part of the certificates pertaining to a single DRF is partly paid-up; the DP will reject the request and return the DRF along with the certificates. The DP may advise the client to send separate requests for the fully paid-up and partly paid-up securities.
  • Part of the certificates pertaining to a single DRF is locked-in, the DP will reject the request and return the DRF along with the certificates to the client. The DP may advise the client to send a separate request for the locked-in certificates. Also, certificates locked-in for different reasons should not be submitted together with a single DRF
  • Holdings in those securities that have not yet been admitted for dematerialisation by NSDL cannot be dematerialised. List of securities admitted for dematerialisation should be verified before defacing the securities.
  • Holdings in street name cannot be dematerialised.
  • The combination of names of holders as printed on the physical certificate should be identical with the names initiating the dematerialisation request.
  • Separate dematerialisation requests will have to be filled for locked-in and free holdings.
  • Separate dematerialisation requests will have to be filled for holdings locked-in for different reasons.
  • Separate dematerialisation requests will have to be filled for fully paid up and partly paid-up holdings.
  • Separate dematerialisation requests will have to be filled for holdings in the different ISINs of a company.