With the introduction of Depository System, shareholders have the choice of holding shares either in physical form or in dematerialised form. Shareholders may avail the facility of dematerialising shares by opening a Depository Account with a Depository Participant of their choice.
The Company's shares have also been notified for Compulsory Trading in demat form with effect from January 17, 2000.
Procedure for Dematerialisation of Shares
Shareholder to open an account with a Depository Participant (DP) of their choice.
Surrender certificates along with Dematerialisation Request Form (DRF) duly completed to the DP
DP intimates NSDL/ CDSL of the request through the system
DP forwards the certificates along with DRF to the Share Transfer Agent
The Share Transfer Agent validates the request, updates records and informs NSDL/ CDSL.
NSDL/ CDSL credits the DP's account and informs the DP. DP updates the shareholder's account
The shares would now stand dematerialised and can be sold in the same manner as physical shares.
Procedure for Rematerialisation of Shares
Shareholder to submit Rematerialisation Request Form (RRF) duly completed to their DP
DP intimates NSDL/ CDSL of the request through the system DP fowards RRF to the Share Transfer Agent
NSDL/ CDSL confirms rematerialisation request to the Share Transfer Agent
Share Transfer Agent updates accounts and informs NSDL/ CDSL and Company issues physical certificate.
The share transfer agent creates shareholder’s data in the Register of Members for shares in physical form.
NSDL/ CDSL updates accounts and downloads details to DP
The Share Transfer Agent dispatches certificates to the shareholder
Procedure involved in purchase of shares
Investor places an order with the Broker The Broker issues a contract note/bill to the Purchaser
Broker instructs his DP to debit his Clearing Member (CM) account
At the time of settlement, the Broker makes payment to Clearing Corporation/Clearing House (CC/CH) via the Clearing Bank
The CC/CH then releases shares to the Broker's CM account which is then transferred to the Investor's account via NSDL/ CDSL
Investor gets credit in his account
Procedure involved in sale of shares
- Investor places an order with the Broker
- The Broker issues contract note to the Investor
- Investor instructs his DP to debit his account.
- The shares move from Investor's account to the broker's Clearing Member (CM) account via NSDL. The Broker's CM account gets credited.
- At the time of settlement Broker transfers his CM account to CC/CH, his account is debited. Broker receives payment from CC/CH which is passed on to the Investor.
- Investor gets credit in his account
Procedure for disbursement of corporate benefits
NSDL/ CDSL would provide the details of beneficial owners (investors in demat segment) with reference to the record date/ book closure dates
The Company will disburse the dividend by NECS to the account of the shareholder or by sending dividend warrants directly to the beneficial owners or to the Mandatee Bank. In case of other corporate benefits like rights/ bonus issues, the distribution will be done in electronic form by NSDL/ CDSL for those holding shares in demat mode.
The investors should ensure that they get credit for their purchases in their Account before the record date/ beginning of book closure, as the case may be, for entitlement of all corporate benefits
- For entitlement of all kinds of corporate benefits, Investor should follow the notification of the Stock Exchanges for record date/book closure as the case may be.