5 Steps To Convert Delisted Shares From India to Physical Form

1. Before selling or transferring a corporation’s stock, you must first convert the physical stock certificates to an electronic format. The process of converting a company’s physical shares into electronic form is known as dematerialization (Demat). According to the Securities and Exchange Board of India (SEBI) legislation, you can only trade and invest in shares that are dematerialized (Demat). This change was introduced to make the process of buying, selling, and transferring a company’s stock easier. Establish a Demat Account. A depository participant must first open a Demat account for the investor. A depository participant acts as an agent or middleman between the investor and the depository. A depository participant is any authorized bank, stock brokerage, or other private entity that provides Demat account opening services. A Demat account can be started by submitting KYC documents such as proof of address and identification (PAN card, Aadhar card, passport size photographs, and so on), as well as an account opening form. If a single holder holds the share certificates, they cannot be dematerialized into a joint Demat account. In addition, for jointly owned shares, a Demat account must be opened in all owners’ names, with the order of holding (first and second) in the new account matching the order of holding in the physical account. Fill up and submit the Dematerialization Request Form (DRF) After successfully opening a Demat account, the next step is to request the conversion of physical share certificates into the dematerialized form using the Dematerialisation Request Form (DRF). For different sorts of shares, separate forms should be utilized.

2. Surrendering shares in printed form is possible. Send the DRF your authentic stock certificates. Don’t forget to write “Surrendered for dematerialization” on each share certificate. Once you’ve completed all of the paperwork, your Depository Participant will send an electronic message to the Registrar and Transfer (R&T) agency. Your records are kept in the hands of the R&T agents. Acknowledgment You will receive an acknowledgment slip for your surrendered shares. Electronically converted shares Once the request is confirmed, your dematerialized shares will be credited to your Demat account, and the physical shares will be destroyed. Why is SEBI operating the way it is? The intention was to protect the investment from con artists. Scammers have been known to get physical shares of genuine investors by requesting duplicate shares from the registrar in the past. To make keeping track of the company’s shares easier for the government. To make it easier for users to keep track of their shares and to limit the number of dividends and shares that go unclaimed. Difficulties Faced by Investors Signature discrepancies, address mismatches, name mismatches, and finding out how to fill out a DRF form are just a few of the issues that an investor may face. For each company’s shares, investors must contact distinct registrars. Conclusion “The method is known as “re-materialization.” Fill out the Remat Request Form (RRF) and ask your DP to re-materialize the amounts in your securities account if you want your assets returned in physical form. Remitting securities is done by contacting your depository participant (DP) Your depository must receive a dematerialization request form (RRF). The depository will then execute your transaction and transmit your Remat request to the firm’s registrar and transfer agent. When the registrar receives a request like this, he or she will make the required changes to the records and produce the certificates. After that, the depository will delete the re- materialized shares from the shareholder’s beneficiary account. Finally, the registrar will mail the physical share certificates to the shareholder. Note: If you were sensible, you would have ensured the split ratio before the record date by purchasing or selling a few extra shares.