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Dematerialisation of Shares

What is Dematerialisation of physical Shares?

Dematerialization of physical shares refers to the process of converting physical share certificates into demat form. In a dematerialized (demat) system, securities are held electronically, eliminating the need for physical share certificates.

Process of dematerialisation

The process involves the following key steps:

  • Opening a Demat Account: To dematerialise physical shares, an investor needs to have a demat account with a registered depository participant (DP). A DP is an intermediary that facilitates the dematerialization and electronic holding of securities.

  • Submission of Physical Certificates: The investor submits the physical share certificates to the DP along with a Dematerialization Request Form (DRF). The DRF contains details such as the company name, number of shares, folio number, etc.

  • Verification: The DP verifies the details on the share certificates and the DRF. Once the verification is complete, the investor's demat account is credited with an equivalent number of electronic shares.

  • Intimation and Confirmation: The depository sends an intimation of successful dematerialization to the investor, and the demat account statement reflects the updated holdings in electronic form.

However, this process is not as easy as it seems as it's quite time-consuming and requires a lot of follow-ups and documentation. Therefore, it is tiring for shareholders to convert shares to demat form. At VPJ World, we take care of the processing to provide you with a hassle-free experience. Contact us to convert your physical shares to demat.

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