Demat Account: How to rematerialise securities? Here's a step-by-step guide

Dematerialisation involves converting carnal shares into physics form, portion rematerialisation is the other process, wherever securities held electronically successful a demat relationship are converted backmost into insubstantial form, i.e., carnal certificates.

In this article, we volition research the process of converting shares from physics signifier into insubstantial form.

Also Read: Demat Account: How to make semipermanent wealth? Follow these 6 cardinal steps

Steps for rematerialisation?

Submit a duly signed Rematerialisation Request Form (RRF) to your Depository Participant (DP) if you privation to person your dematerialised holdings of securities into carnal certificates. If you person appointed a Power of Attorney (POA) holder, they tin besides motion the RRF, provided the POA is registered with the Issuer/Registrar and Transfer Agent (RTA).

Also Read: Demat Account: What is Basic Services Demat Account and what are its features?

Upon receiving the RRF, your DP volition verify the signifier and make the rematerialisation petition successful the system. This petition is past forwarded to the issuer, oregon RTA, for further processing.

After confirmation by the issuer oregon RTA, the specified quantity of securities volition beryllium debited from your demat account. Finally, the issuer, oregon RTA, volition contented the securities successful carnal signifier straight to you, the Beneficial Owner (BO).

Also Read: How to unfastened a associated demat account? Here's a step-by-step guide

Can I rematerialise locked-in securities held successful a demat account?

Yes, locked-in securities successful a demat relationship are eligible for rematerialisation. If a Beneficial Owner (BO) holds some escaped and locked-in securities for a peculiar ISIN (International Securities Identification Number), abstracted Rematerialisation Request Forms (RRFs) are required for rematerialising the escaped quantity and the quantity nether locked-in. 

Also Read: Demat account: What is leverage trading and however does it work?

If the locked-in equilibrium is taxable to antithetic locked-in reasons oregon has antithetic expiry dates, abstracted RRFs indispensable beryllium submitted.

FAQs

What are the implications for securities sent for rematerialisation successful presumption of trading?

Securities that person been submitted for rematerialisation acquisition a process that renders them temporarily ineligible for trading. During this period, the securities are converted from physics signifier to carnal certificates, which typically instrumentality 30 days. 

What precautions should an capitalist instrumentality earlier initiating a rematerialisation petition for a security?

Before initiating a rematerialisation request, capitalist indispensable guarantee that helium has capable escaped balances successful that information successful his depository account.

In the lawsuit of a petition for rematerialisation, volition the capitalist person the aforesaid certificate(s) that were dematerialised?

No, the issuer oregon RTA volition contented a caller certificate(s). The caller certificate(s) whitethorn beryllium issued nether a caller folio fig oregon successful the existing folio if the capitalist already has 1 with the company.

If determination is an mistake successful the sanction oregon immoderate different details connected the carnal certificate issued during rematerialisation, who should the capitalist scope retired to?

The capitalist should interaction the issuer oregon RTA successful lawsuit of immoderate mistakes successful the sanction oregon different details connected the carnal certificate issued.

Does rematerialisation incur immoderate stamp duty?

No, rematerialisation does not represent a transportation and truthful does not pull immoderate stamp duty.

Unlock a satellite of Benefits! From insightful newsletters to real-time banal tracking, breaking quality and a personalized newsfeed – it's each here, conscionable a click away! Login Now!

Published: 23 Apr 2024, 04:41 PM IST