Share Certificate in Demat Convert, This is the complete Process | Stock Market News and Tips

Stock Market News and Tips

Share certificate in Indian stock market will become a history after December.

new Delhi. It has been a long time since the Indian stock market went online. Even then, many investors still have stocks in the form of share certificates instead of the companies' electronic forms. But now there is a break on the share certificates in the stock exchange. That is, investors will now have to dematerialize their share certificates. This means that investors will have to deposit their shares in the Demat Account. 

Last time till December

Such shareholders of listed companies have been given time till December. They will either have to deposit their shares in the demat account or they will have to sell these shares. Share certificate in Indian stock market will become a history after December. It is mandatory to have a demat account for the stock business. If the paper certificates of shares are not in the demat form, then you will not be able to make transactions.

 Read further, what is the process

 1. Open Demat Account

 To transfer the share certificate to electronic form, first, you have to open a demat account. Depositories open a demat account for you, just as the savings account opens in the bank. For this, you must have identity proof, address proof, and PAN card. Many brokers are offering to open your account at no charge. However, Depositories can charge you for your service later on. It includes broking charging, salana maintenance charges. This fee can be a few hundred rupees annually. Where the booking charge is decided based on the transactions you have made. To open a demat account, almost the same process is adapted to open a bank account. Generally, the account can open within a week.

 2. Fill in the DRF form

 After opening a demat account, you will have to fill out the DRF form to convert the share certificate to demat form. DRF means dematerialization revision form. After filing of the DRF form by the applicant, your share certificate will be verified by the officer. After verification, the DRF team will convert all your share certificates into electronic forms. This process takes about 2 to 3 weeks.

After conversion, you can share trading

Once all the share certificates are converted into electronic form, the Depository Participant will provide you the Period statement. These statements will contain information about your holding. After this, you can purchase and sell shares with your demat account.

Under the demat account, shares are transferred through depository deposits in the electric format. National Securities Depository (NSDL) and Central Securities Depository (CSDL) are one of the key depositories in India.

Source:- Money Bhaskar