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Want to keep your physical securities convenient and safe? If so, then dematerialization of securities will be your main goal. There are multiple benefits involved with dematerializing the current securities you possess. Learning about those points is important to move forward.

In layman’s terms, dematerialization is a procedure of converting physical share certificates and some of the other forms of certificates into electronic format. These certificates are mostly held within the Demat account. These electronic forms will exist as entries in the depositories book.

Ways to dematerialize physical securities:

As the capital market is always on the rise, dematerialization of the share certificates has been quite popular, much like holding a Demat account under your name. Now, if this is your first time to dematerialize physical securities, then let’s check out the points to follow. For dematerializing physical share certificates, you need to have a Demat account first. The shares will then exist in that account.

Choosing depository participant:

The first step before you even open a Demat account is to choose a DP or Depository Participant. DP is an agent of a depository like CDSL or NSDL. It will form an intermediary between the investor and the depository. It helps you to handle the Demat account through the same. Any kind of financial institution, bank, or even stockbroker will comply with SEBI guidelines and can be a Depository Participant.

Be sure to check out the service history of DP to ensure that they are pretty reliable. Also, you need to check the dematerialization costs before you can finalize any DP.

Now fill up the Demat account application:

For the next step, you have to fill up the details of the Demat account form. You have to upload scanned copies of all the major documents for completing the KYC.

Getting into an agreement with the DP:

You have to sign an agreement with the Depository Participant. Here, you have to explain all your duties and responsibilities as that Demat account holder. Make sure to read through the agreement in a careful manner before you can finally sign it completely.

Opening Demat account:

When the documents and the application forms have been processed and accepted, you will end up with a unique number for your account and a password. The main purpose of this account number and password is to have direct access to the Demat account anytime you want and from anywhere.

Now pay the charges:

You have to pay certain charges for maintaining your accounts, transactions, and more. The exact amount will depend on your chosen DP.

Filling up DFR form:

When you have a Demat account ready, you have to fill up the Dematerialization Request Form. You can find that on the DP’s website. It needs to be duly filled and submitted with physical share certificates. Make sure to keep proof of identity and proof of address.

These steps are important to follow while working on dematerialization. Now for the Intraday trades across segments like F&O, Currency, and more, Pay when you profit. It will be around flat 20 bucks for every order made.