Transfer cum Demat or Direct Demat is a process wherein the shares purchased by you in the physical form can be sent to the registrar / company for transfer and dematerialisation at the same time.
What you need to do
Send the physical certificates along with duly executed Transfer Deeds to the company / Registrar indicating your intention to directly demat the shares after transfer.
The company upon effecting the transfer will send you a letter containing details of the share certificates.
Submit this letter with a duly filled DRF to us well within the specified date mentioned in the letter. If the letter does not reach the company / registrar before
the specified date, the Company / Registrar despatches the physical certificates back to you.
What happens in Direct demat
Based on guidelines issued by SEBI, the procedure for transfer cum demat is as follows :
Firstly, you will send the physical certificates along with duly executed Transfer Deeds directly to the company / Registrar indicating your intention to directly demat the shares after transfer.
The company / registrar, upon effecting transfer will send you a letter. This letter will contain all the details of certificates such as folio No. , certificate no, Distinctive Range Number (DNR), etc.
The certificates will be retained by the company / registrar. You will fill the demat particulars in the DRF, attach it with the letter sent by the company and submit the same to us.
The letter also specifies a date by which the letter needs to be returned to them. You will have to submit the DRF along with the company letter to us before the specified date.
If the letter does not reach the Company / Registrar before the specified date, the Company / Registrar despatches the physical certificates back to you.
We at our end process this letter in lieu of certificates and create a DRN and forward the same to the company / registrar along with the DRF submitted by you.
The company gives credit against the DRN on receipt of the DRF and ensures defacing of certificates at their end.
The defacing of certificates at the company's end is very crucial to ensure that the certificates are not re-circulated and misused. Hence Transfer cum Demat procedure is admissible only in case of companies identified
by NSDL and categorized as eligible for direct demat. NSDL
permits companies after due certification by auditors on the
internal controls in place at the company.
Stock Holding Corporation of India Limited Registered office - Mittal Court, 'B' Wing, 2nd Floor, 224 Nariman Point, MUMBAI 400 021 SitemapDisclaimer
