Dematerialisation Request Form: Definition, Process, Timeline

In the digital era, one requires a demat account to invest in shares and securities. Shares are stored in your demat account in an electronic format, but what if you possess physical share certificates? To trade these shares, you need to dematerialise them. The dematerialisation request form (DRF) is one of the key steps in the dematerialisation process, which converts physical shares into an electronic format. In this article, we will explore the DRF in greater detail and things to keep in mind while filling it out.

What is the Dematerialisation Request Form (DRF)?

In the past, shares were traded physically through share certificates. A share certificate was proof of ownership of the shares.

If one possesses physical share certificates, they need to be dematerialised to be traded. The dematerialisation request form is a form that one needs to fill out to request the dematerialisation of your physical shares. The DRF is an important document in the dematerialisation process and can help you store your shares digitally in your demat account.

How to Fill the Dematerialisation Request Form

To obtain the DRF, an investor is required to contact the depositary participant with whom they have a demat account. You can request a physical DRF or fill out the form online if the facility is available.

Given below are the key components that are found in the DRF that one needs to fill out.

Contact Details and Date

A valid phone number and the date on which the form is being filled need to be provided.

Account Holders and Client ID

If you have a demat account, you have a unique client ID. The client ID, along with the name of the account holder(s), needs to be filled in this section.

Security Details

While filling the DRF, you need to submit the details of the security, which include the face value and quantity of the shares. You also need to fill in the international securities identification number (ISIN), which is a unique 12-digit code assigned to shares and securities. Additional details such as the status of the shares (free or locked-in), along with the number of certificates, are required as well.

Folio Details

The DRF form requires you to enter the folio number and the share certificate number. Fill in the distinctive numbers and the quantity in the respective columns.

Signatures

The account holder(s) are required to sign the DRF. For further authentication, the sign should match the sign of the depository participant and registrar.

Declaration

You need to sign a declaration that states that the information, share certificates, and other details are authentic.

Form ISR-2

Finally, you are required to fill out Form ISR-2, which is needed to confirm the signature of the securities held by the banker. The form requires details like the company name, quantity of shares, and ISIN.

Process after Submitting the DRF

• Once the dematerialisation request form is filled, you need to submit it along with the original share certificates to the depository participant with whom you have opened a demat account.
• After submitting the duly filled DRF, the DP processes the request and forwards it to the depository, registrar & transfer agents.
• Once the dematerialisation request is approved, the original share certificates are destroyed and converted into an electronic format.
• The depository confirms the dematerialisation of shares and informs the DP about the same. Following this, the dematerialised shares are credited to your demat account.

Timeline for Dematerialisation

As an investor, it is important to know the timeline for the dematerialisation process as it can help you in making decisions accordingly. After submitting the dematerialisation request form, the process to dematerialise shares takes up to 15 to 30 days.

Charges for Dematerialisation

Along with knowing the process of dematerialisation, an investor should also know the associated costs of dematerialisation.

• The process of converting physical share certificates into an electronic format can cost between ₹150 and ₹400 per share certificate.
• Brokers and DPs might charge fees to process the demat request. One should be aware of such charges before selecting a DP.
• After shares are dematerialised, a DP usually charges an annual maintenance fee. This fee can range from ₹200 to ₹850.
• Transaction charges are applicable while buying and selling dematerialised shares. Brokerage, exchange fees, and taxes are some of the transaction charges you should keep in mind.

Common Mistakes While Filling DRF

The dematerialisation process can be overwhelming, but avoiding these common mistakes while filling the DRF can help make the process smoother.

• Ensure that the names on the share certificate and the registered name with the DP match.
• Make sure you enter the accurate client ID and names of the account holders.
• Carefully enter the share certificate numbers. If there is a mismatch in the DRF and the share certificates, the DRF may get rejected. Additional security details, such as the ISIN number and status of the securities, should be filled in correctly as well.
• A common mistake seen in a DRF is the mismatch of signatures. Make sure your signature is accurate. In case your signature has changed, you are required to sign in front of the magistrate and submit an attested affidavit.

Sample DRF Download

You can find a sample DRF by clicking here.