DEMAT, REMAT & REDEMPTION PROCESS

DEMATERIALISATION PROCESS (DRF Process or Demat Process)

Dematerialisation (DRF or Demat) is the process, which enables Beneficial Owners (BO) to
convert their existing securities (share Certificate) in physical form to electronic form and
hold the same in their demat accounts with CDSL/NSDL.

This Dematerialisation Request Form (DRF) is available for download in :

BizOps > Information > Download Forms

Steps for Dematerialisation (broadly)

 The Client submits the share certificates to his/her Servicing Branch (Business
Associate /Own Branch of MOFSL)

 Servicing Branch downloads the Demat Requisition Form (DRF) from Bizops

 DRF No. is pre-printed on the form and is used for all future communications

 Servicing Branch fills DRF and gets signed by the holder(s)

 Servicing Branch defaces the certificates (explained in detail below)

 Servicing Branch does MAKER ENTRY (Data entry and attachment of documents) in
system and submits for PRE-APPROVAL

 The request is processed by DRF team at HO (explained in detail below)

 If Pre-approved, Servicing Branch sends physical documents to HO

 DP verifies and sets up dematerialisation requests in depository and sends

documents to RTA (Registrar & Transfer Agents)

 RTA processes and credits the number of shares in client’s demat account (destroys
physical shares)
Charges

 Rs.50 per DRF, Rs.50 for each certificate and Rs.50 towards Courier charges

DRF can be signed by the POA holder also if any POA has been given. The POA must be
registered with the Issuer/RTA.

What precautions should the Servicing Branch take before submitting certificates to DP
for dematerialization?

The Branch should take care of following -

 Verify that the client is the registered owner of the securities.

 Pattern of ownership of securities is same as that in demat account of the client.
 In case the client’s name on the DRF is not matching with that on the certificate (e.g.
the holder of the securities may have opened the demat account in the name of Sushil
Ramesh Shah but his name on the certificate may appear as Sushil R. Shah or S. R.
Shah, etc.), the dematerialisation request could be accepted by the DP, if the client’s
signature on the DRF matches with specimen signature available on record with the
DP. Also provide Self Attested PAN or Aadhar copy.
 Verify that the securities are available for demat in CSDL / NSDL.

This can be checked in https://www.cdslindia.com/Investors/InvestorCorner.aspx

Defacing of Share Certificates

Following needs to be done on all share certificates before attaching the certificate in
system:

I) Punch 2 holes on top of the share certificates.

ii) Mark 2 lines across the certificates.

II) “Surrender for dematerialisation….” stamp to be affixed on share certificates

along with DP Name and 16 Digit demat account number.

This is called ‘Defacing’ of certificate.

If there are so many certificates, scan of only one certificate need be attached. However,
details of all certificates needs to be entered in system.
Types of Equity Dematerialisation

 Normal Dematerialisation

 Transposition-cum-Dematerialisation

 Transmission-cum-Dematerialisation

Normal Dematerialisation

In this case, client name on share certificate and in Demat account will be in same order.

A sample of filled and signed DRF is given below for your reference.
Transposition-cum-Dematerialisation

In case of multiple holders accounts (joint holders), if name sequence is different in demat
account and in share certificates, the client has to provide a duly filled and signed
Transposition Form along with DRF.

A Beneficial Owner’s (BO) Account can have a maximum of three holders.

If opening a new account, the BOs must ensure that the demat account should be in the same
sequence of names as shown on the physical Share Certificates to be Dematerialised.

Example: If the Share Certificates are registered in the names of A, B, and C, then the
DEMAT Account must also be opened in the same sequence of names as: A B C
However, in below scenarios

Name in The ------------> Share Certificate Demat Account

Two Holders B and A A and B

A, C ,B
B ,A, C
Three holders B ,C , A A , B AND C
C, A , B
C, B, A

The shares can be dematerialised in the same Demat account by submitting a separate
Transposition form (TRPF) along with DRF and share certificate.
The Transposition form is available for download in :
BizOps > Information > Downloads

Procedure for filling and submitting Transposition form (TPRF):

i) All the holders have to sign on the TPRF in the same order as in demat account.

ii) The TPRF should mention only those names (in any order) who are the holders in
the DEMAT account.

iii) The BO has to submit separate application, form (TPRF) for transposition, for each
ISIN, along with the DRF and shares certificates.

Further, the same TPRF can be used if the shares have been allotted under three
different folio numbers for the same ISIN and same names of the holders.
Transposition Form

A sample of filled and signed TPRF is given below for your reference.
Transmission-cum-Dematerialisation

 Involves Death of one of the holders in Joint a/c.

 Original Death certificate or notarised copy + Transmission-cum-demat form

required along with DRF and share ceritifcates.

 If the name sequence is different in demat account, additionally Transposition

form required.

 For Single holder a/c., in case of death of sole holder, the nominee or legal
heir has to approach RTA. No role of DP in such cases.

Transmission-cum-Dematerialization Form

This form is available for download in :

BizOps > Information > Downloads

Following details to be filled in Transmission cum dematerialization form:

 Name of the expired person

 DP ID & client ID

 DRF Number

 Name of Security, ISIN and quantity

 Client Name & Signature of all survival holders

 DP Seal & signature is mandatory on Transmission cum demat form.

A sample of filled and signed form is given below for your reference.
Destatementisation of Mutual Fund Units

Destatementisation [Destat] is the process, which enables clients to convert their Physical
Mutual Fund units in the form of SOA (Statement of Account), to electronic form in their
demat account.

The DRF for Mutual Funds is different from that of Equity and is called MF-DRF.

This form is available for download in :

BizOps > Information > Download Forms

A sample of filled and signed MF-DRF is given below for your reference.
Data Punching Process in CBOS
All the DRF requests (For Equity as well as Mutual Fund) should be punched in system.
Share certificates/SOA (Statement of Account) along with other documents, has to be
attached and get Pre-approved mandatorily before sending the physical documents to HO.

Path: Click on Menu > DP Module > Demat & Remat-CDSL > Demat > Add New

Maker Entry

 Maker (Servicing Branch) enters the DRF details in system

 Fills all the details including security details and Saves

 Attaches scan images, again saves and then Submits.

Note:

 If the user submits the request without saving security details or without
saving attachments of documents, request will remain at user end only and
status will be ‘Maker in progress’.

 If the client id entered has a single holder, then Transposition Details and
Transmission details options will be disabled. In case of joint holder, both
options will be enabled.

DRF Pre-approval Process

 This is mandatory for all BA and Branches to reduce objections and minimise
courier cost.

 On submission by Servicing Branch, status will be ‘Pre-approval pending’.

  The verifier at HO will verify and approve, if proper in all respects, else will
reject with proper remarks.

Path: Menu > DP Module > DP Verification CDSL > Pre-Approval Demat

DRF rejected in pre-approval

All rejected request will be again reflect in ‘Demat’ screen. BA or maker can check the same
from their end and re-submit after clearing objections.
DRF approved in Pre-approval

 Once the request is pre-approved by checker, Servicing Branch can check

status in Maker Checker report.

 A Unique ID is generated once the DRF is Pre-approved.

 The Status of DRF and Unique Number, both can be seen in Maker Checker
report.

Path: Menu > DP Module > View and Reports > Maker checker
 Packet Generation Process after DRF Pre-Approved

Servicing Branch has to Login in HiTs

Path: Menu > Dispatch > Dispatch Details (Branch/BA)

  Servicing Branch will search the unique number for respective DRF

 Tick the check Box

 Update the Courier details and generate the packet number

 Servicing Branch will write the Packet Number on Cover and dispatch to HO

Rematerialisation Process

Rematerialisation is conversion of electronic holdings in physical form.

The Rematerialisation Request Form (RRF) is available for download in :

BizOps > Information > Downloads

Fill the Rematerialization Request Form (RRF) and send the same to DP. All joint holders, if
applicable, should sign the RRF. RRF can be signed by the POA holder also if any POA has been
given. The POA must be registered with the Issuer/RTA.

 Sufficient Free / Lock-in Balance should be present in the demat account.

 Separate remat request should be setup for free shares and lock-in shares.
 The ISIN should not be Inactive / Frozen for debits.
 The demat account should not be closed.
Send duly filled and signed RRF to HO for further processing.

As per CDSL, there is a unique way of calculating Remat charges.

As per Remat charges mentioned in MOFSL DP Tariff sheet, the Remat Charges are Rs.35 per
certificate or Rs.35 per 100 shares or part thereof, whichever is higher. In addition, Courier
charges of Rs.50 is applicable for RRF sent to RTA.

This means that charges will be calculated for total number of shares (Qty) as well as number
of certificates and the higher of the two will be applicable.

Examples:
1) Remat request for 1 certificate of 1000 shares.

Charges as per number of certificates = 35*1 = Rs.35

Charges as per number of shares (Qty) = 35*(1000/100) = 35*10 = Rs.350

The higher of the above two calculations is Rs.350, hence the amount will be charged
as per number of shares (Qty).

2) Remat request for 4 certificates each of 25 shares, where total no. of shares is 100.

Charges as per number of certificates = 35*4 = Rs. 140

Charges as per number of shares (Qty) = 35*(100/100) = 35*1 = Rs.35

The higher of the above two calculations is Rs.140, hence the amount will be charged
as per number of certificates.
 REDEMPTION PROCESS

Redemption of Mutual fund is a process in which investor sell units back to the fund.

The Rematerialisation Request Form (RRF) is available for download in :

BizOps > Information > Downloads

Process for Redemption of Mutual Fund Units

- Send duly filled and signed Redemption Form to HO (Scan followed by Hard copy)
- Based on the scan copy received, HO will setup the Redemption request in CDSL system
- HO will confirm vide reply mail to the Branch/CSE
- Cut-off time for redemption is 2.30 pm, to receive funds on T+4 in client’s bank account

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