Dematerialisation involves converting physical shares into electronic form, while rematerialisation is the opposite process, where securities held electronically in a demat account are converted back into paper form, i.e., physical certificates.
In this article, we will explore the process of converting shares from electronic form into paper form.
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Steps for rematerialisation?
Submit a duly signed Rematerialisation Request Form (RRF) to your Depository Participant (DP) if you wish to convert your dematerialised holdings of securities into physical certificates. If you have appointed a Power of Attorney (POA) holder, they can also sign the RRF, provided the POA is registered with the Issuer/Registrar and Transfer Agent (RTA).
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Upon receiving the RRF, your DP will verify the form and generate the rematerialisation request in the system. This request is then forwarded to the issuer, or RTA, for further processing.
After confirmation by the issuer or RTA, the specified quantity of securities will be debited from your demat account. Finally, the issuer, or RTA, will issue the securities in physical form directly to you, the Beneficial Owner (BO).
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Can I rematerialise locked-in securities held in a demat account?
Yes, locked-in securities in a demat account are eligible for rematerialisation. If a Beneficial Owner (BO) holds both free and locked-in securities for a particular ISIN (International Securities Identification Number), separate Rematerialisation Request Forms (RRFs) are required for rematerialising the free quantity and the quantity under locked-in.
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If the locked-in balance is subject to different locked-in reasons or has different expiry dates, separate RRFs must be submitted.
FAQs
What are the implications for securities sent for rematerialisation in terms of trading?
Securities that have been submitted for rematerialisation undergo a process that renders them temporarily ineligible for trading. During this period, the securities are converted from electronic form to physical certificates, which typically take 30 days.
What precautions should an investor take before initiating a rematerialisation request for a security?
Before initiating a rematerialisation request, investor must ensure that he has sufficient free balances in that security in his depository account.
In the event of a request for rematerialisation, will the investor receive the same certificate(s) that were dematerialised?
No, the issuer or RTA will issue a new certificate(s). The new certificate(s) may be issued under a new folio number or in the existing folio if the investor already has one with the company.
If there is an error in the name or any other details on the physical certificate issued during rematerialisation, who should the investor reach out to?
The investor should contact the issuer or RTA in case of any mistakes in the name or other details on the physical certificate issued.
Does rematerialisation incur any stamp duty?
No, rematerialisation does not constitute a transfer and therefore does not attract any stamp duty.
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Published: 23 Apr 2024, 04:41 PM IST