Shareholder(s) who want to hold shares in demat form should open a demat account with a depository participant (DP) registered with either NSDL or CDSL, and then surrender their share certificate(s) for dematerialisation to the company through the DP. List of DPs registered with NSDL and CDSL is available on their respective websites.
Steps involved in dematerialisation of shares:
- - Shareholder fills out a Dematerialisation Request Form (DRF) and surrenders the defaced share certificate(s) alongwith the DRF to the DP
- - The DP intimates the company of this request through the system of NSDL/CDSL
- - The DP submits the share certificate(s) and the DRF to the company
- - The company updates the Register of Members and then validates the request
- - The Depository credits the DP's account
- - The DP updates the investor's demat account and informs the shareholder
At present, no stamp duty has to be paid on transfer of shares in demat form.