What do you mean by dematerialisation?

Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with Karvy. In order to dematerialise certificates; an investor will have to first open an account with Karvy and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF], which is available with Karvy and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to Karvy for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates.

Can I dematerialise any share certificate?

You can dematerialise only those certificates that are already registered in your name and are in the list of securities admitted for dematerialisation at NSDL / CDSL. All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL / CDSL. This list has more than 4,300 companies and is steadily growing. You can get an updated list of these companies from Karvy.

What precautions should I take before defacing a share certificate?

Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to Karvy.

Can separate nomination be made for each security held in a depository account?

Before defacing the share certificate, you must ensure that it is available for dematerialisation. You must therefore check with Karvy whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking "Surrendered for Dematerialisation" on the face of the certificate.

How long does the dematerialisation process take?

Dematerialisation will normally take about 30 days.