FAQS

A. Dematerialisation (or Demat) signifies the conversion of a share certificate from its present physical form to electronic form for the same number of holdings.
It is a direct application of scope provided by the tremendous progress made in the area of Information Technology, whereby voluminous and cumbersome paper work involved in the scrip based system is eliminated. It offers scope for paperless trading through state-of-the-art technology, whereby share transactions and transfers are processed electronically without involving any share certificate or transfer deed after the share certificates have been converted from the physical to electronic form.
Demat attempts to avoid the time consuming and complex process of getting shares transferred in the name of buyers and also aims to shirk inherent problems of bad deliveries, delay in processing/fraudulent interception in postal transit, etc. Dematerialisation of shares is optional and an investor can still hold shares in the physical form. However, he/she has to demat the shares if he/she wishes to sell the same through the Stock Exchanges. Similarly, if an investor purchases shares, he/she will get delivery of the shares in demat form.
The Depositories Act, 1996 has been enacted to regulate the matters related and incidental to the operation of Depositories and demat operations. Two Depositories are in operation - National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

A. First, please open an account with a Depository Participant (DP) and obtain a unique Client ID number. Thereafter, kindly fill up a Dematerialisation Request Form (DRF) provided by the DP and surrender the physical shares intended to be dematted to the DP. Upon receipt of the shares and the DRF, the DP will send an electronic request through the Depository to the company for confirmation of demat. Each request will bear a unique transaction number.
Simultaneously, the DP will surrender the DRF and the shares to the company with a covering letter requesting the company to confirm the demat. After verifying the documents received from the DP, the company will confirm the demat to the Depository.
This confirmation will be passed on from the Depository to the DP, which holds your account. After receiving this confirmation from the Depository, the DP will credit the account with the dematerialized shares. The DP will then hold the shares in the dematerialized form on your behalf and you become the beneficial owner of these dematerialized shares.

A. If you hold shares in the electronic form, you have the option of converting your holding to the physical form by submitting a Rematerialisation Request Form (RRF) through your DP. The procedure if similar to that of Dematerialisation. Upon receiving such a request from your DP, the company will issue share certificates for the number of rematerialised shares.

A. The charges for demat have to be borne by the shareholder. The charges differ from DP to DP and therefore you will have to contact your DP for details regarding the same.

A. Shares should be registered in your favor before they can be dematted. For this purpose you need to lodge the share certificates and a duly executed transfer deed with the company. Once the share transfer is processed, we will send an option letter for dematting your shares. You can then give us your Demat Account No. with the Demat Request form for the dematting process through your DP and the shares will be directly credited to your Demat Account.

A. Yes. With effect from 5th April, 1999 it will become mandatory to trade shares in demat form. However, you can still buy up to 500 shares in the physical form (through odd lot window facilities provided by Stock Exchanges) and send the same for transfer to the Company. You may indicate your desire to return the shares in the physical form, while lodging the same for transfer with us. After the transfer is registered in your favour, we shall return the share certificates in to you in the physical form.

A. On the Record date, the Depository Participants will provide a list of demat account holders indicating the number of shares they hold in the electronic form to the company (known as Benpos). On the basis of Benpos, the company will issue dividend warrants in favour of the demat account holders.
The rights of the shareholders holding shares in demat form are on par with holders in the physical form. Hence, you will be eligible to procure the Annual Report and can rightfully attend the AGM as a shareholder.

A. Yes. You will have to contact your DP for this purpose.