Process of Dematerialisation of the Shares
by Ankit Nagpal
24 February, 2024
Describes the step-by-step process whereby shareholders can dematerialise physical share certificates into electronic form via depositories such as NSDL / CDSL.
- Confirmation from Shareholders of their existing Demat account if any, whether they are holding in NSDL OR CDSL.
- If the major shareholders have demat account facility in NSDL than we obtain ISIN with NSDL only if they are holding demat account in CDSL than obtain ISIN with CDSL only.
- After finalization or confirmation from members about the existing demat facility, Required Documents of Company will submit to RTA to obtain ISIN.
- Opening of Demat Account of Shareholder with CDSL or NSDL, if they don’t have any demat account.
- Opening of Demat account depend upon the major existing shareholders account, whether they have in NSDL or CDSL. Let’s say if some shareholders have their account in NSDL and some have in CDSL than minor shareholders have to open new account in accordance with the major shareholders’ account.
- Time Involve: After submission of documents to RTA for ISIN, NSDL or CDSL will take approx. 30 days’ time to allot ISIN.
- Member will submit their request to Depository (NSDL or CDSL) where they have demat account with physical share certificates.
- Depositary will send their request to RTA.
- RTA will send confirmation letter to Company for demat.
- After signing of confirmation, company’s shares will be credited to Demat Account of respective shareholders
