Rematerialisation.
Can electronic holdings be converted back into Physical Certificates?
Yes. The process of reconverting demat shares to physical shares is called rematerialisation. If one wishes to get back his securities in the physical form, one has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account.
The process of rematerialisation is outlined below:
1. Investor makes a request for rematerialisation for the electronic holding of shares, which he is holding with a DP.
2. Depository participant intimates depository of the request through the system about the request.
3. Depository confirms rematerialisation request to the registrar of the company whose shares are sought to be rematerialized.
4. Registrar updates accounts and prints share certificates. Certificates also contain distinctive numbers of shares.
5. Depository updates accounts and downloads details to depository participant.
Registrar dispatches physical share certificates to investor.
When to rematerialise?
Security settlement in Indian securities markets takes place only in the demat form and hence, it is advisable to hold shares in the demat form only to quickly sell shares as and when desired. An investor can rematerialise shares only when he has no intention to sell his holdings and wants to hold shares only for the purpose of investment for the long term.
Categories: Stock Market
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