How to fill a Dematerialisation Request Form?

Last Updated: 21 May 2024

The current 21st-century stock market involves buying and selling shares in a seamless way online. While it may sound easy for modern investors, the process becomes challenging for the ones who still have physical shares. Suppose you hold your physical shares and wish to sell them; you won’t be able to do so through online modes. Thus, SEBI simplifies the process in a few ways.

According to SEBI (Securities and Exchange Board of India), investors can convert physical securities and shares into an online mode to transfer or sell them. You can convert them into an electronic mode with the help of your DEMAT account. So, do you know how to fill up the DRF form? If not, welcome to this all-encompassing post that gives an outline of filling out the DRF form with a few simple steps. Now, what is DRF? Read on to learn further on this front.

An Introduction to DRF: What Is It?

A DRF or Dematerialisation Request Form helps you convert physical securities into dematerialised or electronic forms. These may include your bonds or share certificates. It is the formal requirement that the investor makes to the DP (Depository Participant) or broker. Dematerialisation is the process of converting physical shares and securities. The DP acts as the intermediary between the depository and the investor.

This form includes the most important details like a unique identification number, the investor’s name, securities for dematerialisation, and security details. You can submit the DRF to express your intent to hold your securities in a digital mode. This offers a wide range of benefits, such as improved security, convenience, and trading ease. You need to fill up the DRF form to the this conversion.

Factors to Consider When Filling a DRF Form: What Should You Keep In Mind?

Dematerialisation Request Form is a crucial document to convert physical shares as well as securities into electronic or digital forms. However, there are certain prerequisites you need to meet before you fill out the form. Below are the things to consider:

• Having a DEMAT Account: You must have a DEMAT account to fill out the DRF form
• An Account with the DP: You need to have an account with the DP or Depository Participant (note that DP facilitates the process)
• Surrendering Share Certificates with the DP: You must deface and then surrender the share certificates to the Depository Participant that are registered under your name
• Submitting the Form: If you wish to initiate the conversion, you must submit the Dematerialisation Request Form along with the physical share certificates

Understanding the Various Types of DRF: Things You Need to Keep In Mind

The Dematerialisation Request Form has three categories, which are applicable to unique scenarios. If you want to fill out the form, now is the right time to learn about the types of DRF. Depending on your scenario, you can take a look at the following dematerialisation forms and discover their benefits:

• Transposition-cum-Dematerialization: If you are an investor and your name is mentioned on your physical share certificate with the correct spelling of your name mentioned in your Demat account, you can choose Transposition-cum-Dematerialization. You don’t have to consider the order of your name. The spelling of your name is what matters the most. If they are the same, you can fill out this form.
• Transmission-cum-Dematerialization: Considering the joint holdings, when more than one joint holder dies, the one surviving may fill up the form. This helps you remove the name of the deceased from physical certificates. You can easily get your securities dematerialised or transfer them into digital modes.
• Normal Demat Request Form: The spelling of your name in the DEMAT account and physical share certificate have to be the same. Also, the spellings should be in the same order. And no joint holders should die by the time you dematerialised your physical securities. In such circumstances, you may choose the Normal Demat Request Form to fill out the DRF form.

Filling Your Dematerialisation Request Form: The Simplest Steps to Follow

Transfering your physical securities into a digital form requires the DRF. So, as an investor, you can enjoy the convenience and security of these securities by filling out the DRF. That’s why you must understand the straightforward steps to fill up the DRF form

Mentioned below are the steps to follow:

• 1st step: The first step involves you providing your contact details (the existing ones) alongside the date of your DRF submission.
• 2nd step: Next comes the client ID. Note that every client is assigned an outstanding ID number. So, you need to ensure that you enter this number properly without any mistake.
• 3rd step: The next step is about writing the name of the account holder. Use the same order as listed in the DEMAT account while writing the names of the account holder(s). Follow any one of the above types of DFR forms, considering your requirements.
• 4th step: Next comes specifying the face value. Here, you need to be specific about the security’s face value mentioned in your physical share certificate.
• 5th step: After this, it’s time to quantify the shares. All you need is to write down the number of shares that are present on your certificate without any mistake.
• 6th step: The next step is about entering the ISIN number. Also known as the International Securities Identification Number, it comprises 12 digits. This alphanumeric code is assigned to bonds, debentures, and shares, to mention a few securities. There are two digits representing the country where your securities are registered.
• 7th step: Now, coming to the detailing of the security. You need to be specific about whether the certificates are locked in or free. You also need to mention the number of certificates you have.
• 8th step: The next step involves folio details, whereby you need to enter your folio number, certificate numbers, specific numbers, and your shares’ quantity. In case the certificate numbers are in a sequential manner, you must mention the number (for instance, from this date to that date). Or else you can also enter the numbers separately.
• 9th step: In the ninth step, you need to give your signature. Keep the account names in order while signing the form individually. Note that each account holder needs to sign this. In addition, the signatures should match the ones according to the specimen signatures present on the record.
• 10th step: The next step is about offering a declaration. Here, you need to state that the details mentioned in the form are true to your knowledge. This provides a declaration.
• 11th step: Now, it’s time to fill up the form ISR-2. This confirms that the signature of all securities is held by a banker. Here, you need to include the type of security, company name, ISIN, and of course, the quantity of shares.

Several Times When Your Dematerialisation Request Form Might Receive a Rejection by DP or Depository Participant

There are several instances where the DP or Depository Participants might reject your FRF for a wide range of reasons. The following are the top reasons why your form may get rejected by the DP. Let’s read and learn.

• You Don’t Provide Enough Details: The Depository Participants have all rights to reject the form when you submit an incomplete form. If the form has missing information that is required for the DP to assess, it might be rejected. The forms need to be filled out in the most accurate manner, as incomplete details may reject the form altogether.
• Signatures Do Not Match: To ensure the information is provided to the best of your knowledge, DPs may cross-reference the signs provided by the account holders. In case a single sign does not match, it may receive a rejection. A DP cross-checks the signatures in order to refrain someone from unauthorised account access, given the rise of cyber thefts. So, this becomes a fundamental reason behind the rejection of the DRF.
• A Few Documents Are Absent: The account holder’s prime responsibility is to address and identify the proof of evidence that supports documentation as requested by the DRF. A DP has the complete right to reject this request in case certain documents are not attached or included in the form.
• Discrepancy from the Account Holder’s End: A DP may reject the request in case the names of the account holders on the DRF don’t correspond with their DEMAT account’s names on the present Demat account. The DP performs this in order to guarantee the precision and security of the account transactions.

Considering the aforementioned things, carefully reading and completing the DRF is imperative. You need to confirm the signatures after confirming they match the record. Perform all the paperwork and ensure that you provide the right information to avoid any rejection from DP. By doing so, you can carry forward the process of requesting the dematerialisation of your physical securities.

Wrapping up

So, this post has shed light on dematerialising your physical security by filling out the DRF form. If you wish to convert your physical shares into an electronic form, you need to follow the above-mentioned steps to fill out the Dematerialisation Request Form. It’s the foundation step to initiate the digital transformation. So, follow the above guidelines and navigate the process with ease and confidence.

Frequently Asked Questions

What are the documents required to fill out a DRF?

 

To fill out the DRF form, you need your physical share certificates’ original copy. The share certificates should be in proper condition with visible information. In addition, you also need the filled DRF. Ensure that you use different forms for shares considering different companies.

 

How long does it take to convert your physical shares into digital ones?

The process takes around 2 to 3 weeks. An investor may easily sell, buy or even trade shares in the digital space after completing the process.

Is there any last date for filing DRF?

Yes, according to Rule 9B of the Allotment Rules, the private company (not the small companies) must ensure that the shares are in the dematerialised form by the end of September 30, 2024.

Can you dematerialise your shares now?

Yes, it is compulsory to dematerialise your shares. Read the above steps to convert your physical shares. According to SEBI, investors must convert their physical shares to a digital format