Time period required | Convert physical share into Demat/Electronic Share/ form ( Dematerialisation)
Dematerialisation
What's the time duration of conversion of shares into demat form? what is the process of converting physical or paper share in to Demat/Electronic form? all this questions are been asked .
Here is the answer to all those questions. Now dematerilisation is a little long process as they verify the company certificate to transfer those shares to the right owner. According to the rules and laws of SEBI it takes around 21 days to complete the process of transfer or dematerialisation.
But in some case it can take more or less then 21 days may vary from company to company of your broker.
Other thing is the process.
A demat account is required to transfer the share . So the owner of physical share and account holder must be same.
Fill a DRF form ( Dematerialisation request form) . You can get this from your broker or company like Zerodha, Angle brocking , Badjate etc which ever you have.
If in case persons is dead the shares will be transferred to nominees demat account. Wait what nominees demat? Yeh right if nominee has a demat account they will directly be transfer-ed when you fill transposition form. Or you have to open a account and then do the same process.
Nominee has to check the mode of holding of physical shares.
1. Single mode: Then in that case you need to prove yourself as nominee in court with proof.
2. Anyone/survivor mode: In that case you can transfer those shares by filling transposition form.
Also if those physical shares are written in your name as nominee in family person's / others Will a legal declaration can be transferred .
There are 2 depositories in SEBI one is NSDL and other CDSL you can ask to your broker if you don't know which one you are connected with. Now this depositories don't directly deal with customers so the have depository participants who can deal with their customers on their behalf to whom we know as broker.
When you submit the physical certificate and DRF form to you broker/depository participants they keep a copy with him and submit the original to NSDL/CDSL (Depositories). Now NSDL/CDSL (Depositories) will keep the DRF form and give the share certificate to the company the share belong to. Company verifies the physical shares and gives the conformation back to NSDL/CDSL (Depositories).
Finally NSDL/CDSL (Depositories) gives the conformation back to broker (depository participants) and he will transfer those shares to demat form. According to SEBI's guidelines its is compulsory that you shares are in demat form if you want to buy or sell them. Not only shares but also all the physical format certificates.
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