SEBI Circular SEBI/HO/MIRSD/POD-1/P/CIR/2023/181 dated November 17, 2023 prohibits the transfer of physical shares except through dematerialisation. Physical certificates are susceptible to loss, theft, damage, and fraud. FISC handles the complete dematerialisation process, converting your physical holdings to electronic form in full compliance with SEBI regulations.
Pursuant to SEBI's direction effective April 1, 2019, and further circulars issued thereunder, the transfer of shares in listed companies held in physical form is not permitted. Any shareholder wishing to transfer, pledge, or trade shares must first dematerialise them. Physical certificates are also at significant risk of deterioration, loss, or misuse. Dematerialisation eliminates these risks and brings the shareholder's holdings into the regulated, traceable framework of the depository system.
The shareholder must open a DEMAT account with a Depository Participant registered with NSDL or CDSL, if one is not already in existence. The physical certificates are then submitted along with a Dematerialisation Request Form (DRF) to the Depository Participant. The Depository Participant processes the request and forwards the certificates to the Registrar and Transfer Agent (RTA) of the company. The RTA confirms the validity of the certificates, the ISIN is credited to the DEMAT account, and the physical certificates are cancelled.
FISC advises on the choice of Depository Participant where required, prepares the DRF and all accompanying documentation, verifies the particulars on the certificates against the company's records to identify any discrepancies before submission, and follows up with the Depository Participant and RTA until the dematerialisation is confirmed. Where the certificate has been partially damaged or where there are name discrepancies, FISC advises on the remedial steps necessary before submission.