process to Dematerialization, or converting physical shares into electronic form

De-materialization, or converting physical shares into electronic form, is a process required by the Indian government for holding shares in a more secure and convenient manner. Here is a detailed step-by-step guide on how to de-materialize shares :

1. Open a Demat Account: The first step is to open a Demat account with a depository participant (DP), such as a bank or a brokerage firm. You will need to complete the account opening process, which typically involves submitting a list of required documents, including identity and address proof, PAN card, bank details, and a signed account opening form.

    

2. Obtain a Request for De-materialization (RFD) form: Once your Demat account is open, you will need to obtain a Request for De-materialization (RFD) form from your DP. This form is used to request the conversion of physical shares into electronic form.

    

3. Fill out the RFD form: Fill out the RFD form with the necessary details, including your Demat account number, the name of the company whose shares you wish to de-materialize, the number of shares to be de-materialized, and your signature.

    

4. Submit the RFD form and physical shares: Deliver the filled-out RFD form and the physical shares to your DP. The DP will verify the authenticity of the shares and send the request to the registrar and transfer (R&T) agent for processing.

    

5. Wait for De-materialization to be Completed: The R&T agent will process the request and de materialize the physical shares. This process typically takes around 15-20 days to complete.

    

6. Receive Confirmation of De-materialization: Once the de-materialization process is completed, you will receive a confirmation from your DP indicating that the shares have been credited to your Demat account. You can now access and manage your shares electronically.

    

7. Update Bank Details: To receive dividends or any other credit for your de-materialized shares, you will need to link your Demat account with your bank account. You can do this by filling out a bank mandate form and submitting it to your DP.

    

It's important to keep in mind that de-materialization is a one-time process and cannot be undone. Once your physical shares have been de-materialized, they will exist only in electronic form in your Demat account. Additionally, it's important to ensure that you are following all the regulations and procedures as prescribed by the government and the Depositories Act, 1996.

By de-materializing your physical shares, you can enjoy the benefits of faster, more secure, and more convenient share transactions.