In today’s digital age, buying and selling shares has become a swift and hassle-free online process. However, what if you still possess physical share certificates and wish to sell or transfer them? According to the guidelines set forth by the Securities and Exchange Board of India (SEBI), converting your physical shares and securities into electronic form is a prerequisite for any sale or transfer. This process involves the use of a Demat account and the completion of a Dematerialisation Request Form (DRF). This comprehensive guide will walk you through the intricacies of a DRF, its significance, and how to fill dematerialisation request form.
Table of Content
Understanding the Dematerialisation Request Form (DRF)
DRF, short for Dematerialization Request Form, is a crucial document used for the conversion of physical shares and securities into digital or electronic form. However, certain prerequisites must be met before initiating the dematerialization process:
a. Possession of a Demat Account:
To embark on the journey of dematerialization, you must have an active Demat account.
b. Account with a Depository Participant (DP):
You must also hold an account with a Depository Participant (DP), who plays a pivotal role in facilitating the dematerialization process.
c. Surrender of Physical Certificates:
Any physical share certificates registered in your name must be surrendered to the DP as part of the dematerialization process.
d. Submission of a DRF:
To initiate the conversion, you need to complete and submit a Dematerialisation Request Form alongside your physical share certificates.
Types of dematerialisation request form
DRFs come in various types, each applicable in distinct scenarios:
- Transmission-cum-Dematerialization:
In the event of joint holdings, if one or more joint holder(s) pass away, the surviving joint holder(s) can utilise this form to remove the deceased’s name from the physical certificate and subsequently proceed with dematerialization.
- Transposition-cum-Dematerialization:
When the name(s) on the physical share certificate match the name(s) in the Demat account but are arranged differently, this form is required.
- Normal Demat Request Form:
If the name(s) on the physical share certificate match the name(s) on the Demat account in the same order, and none of the joint holder(s) have passed away, the Normal Demat Request Form is the appropriate choice. This form applies if none of the above situations is relevant to your case.
How to Fill Dematerialisation Request Form
To successfully complete a DRF, you’ll need to provide specific details as outlined below:
1. Contact Number and Date: Input your current phone number and the date of DRF submission.
2. Specific Client ID: Every client possesses a unique client ID, which must be mentioned in the form.
3. Account Holder(s): List the name of the holder(s) in the same order as indicated in the Demat account.
4. Face Value: Specify the face value of the security, in accordance with the details on the physical share certificate.
5. Quantity of Shares: Mention the number of shares corresponding to the certificate.
6. ISIN: Enter the ISIN, a unique 12-digit alphanumeric code assigned to shares, debentures, bonds, and other securities when they are admitted into the depository system. Note that the first two digits of the ISIN code denote the country of registration for the security.
7. Details of Security: Indicate whether the securities are free or locked-in, and provide the total number of certificates.
8. Folio Details: Include the folio number, certificate numbers, distinctive numbers, and the quantity of shares. If the certificate numbers are sequential, enter the range; otherwise, list them separately in individual rows.
9. Signature: All holders should provide their complete signatures, following the order of their names in the account. These signatures must match the specimen signature on record with the registrar.
10. Declaration: Make a declaration affirming that the details filled in the application form are accurate to the best of your knowledge.
11. Form ISR-2: To confirm the signature of the securities held by the banker, you’ll need to fill in specific details in Form ISR-2. These details include the company name, type of security, number of shares, and ISIN.
Also Read: Sell Shares From Demat Account
In Conclusion
Dematerialization is the process of converting physical shares into digital form, and a Dematerialisation Request Form (DRF) is the key to initiating this transformation. The DRF submission process is straightforward and seamless if completed diligently. In case of errors or discrepancies, resolution is possible through cooperative interaction with the relevant authorities. By following these guidelines, you can navigate the dematerialization process with confidence and ensure the smooth transition of your physical securities into electronic form.
