Process of Rematerialisation


Meaning of Rematerialisation

Rematerialisation is the process of conversion of digitally held shares into physical or paper form. It is just the reverse of the dematerialisation process where shares are converted into an electronic form from physical form. Under the rematerialisation process, digital existence of shares is revoked & physical existence by issuing new physical. During rematerialisation, process shares get distinct numbers from RTA (Registrar & Transfer Agent).

Every transaction concerned with trading of securities takes place physically involving paperwork once shares are rematerialised. Company takes the charge of maintaining the account of securities when they are held in physical form. Investors are required to fill up & submit RRF (Remat Request Form) to Depository Participant for placing the request of rematerialisation of shares. Securities owners get new physical certificates for their respective securities from RTA after successful rematerialisation of their shares.

However, the rematerialisation process is very complex & may take up to 30 days to complete. Rematerialisation process involves a series of steps to be followed by the investor for conversion of his shares in physical form. The whole process is discussed below.

The various steps required in the process of dematerialization are as follows:

Process of Rematerialisation

Filling up RRF (Remat Request Form)

The process of rematerialisation starts with placing a request by the investor for rematerialisation of his shares. He is required to fill up Remat request form with the depository participant. Through this form, investor informs depository participant for rematerialisation of shares. 

Verification of RRF

Once the Depository participant receives the RRF (Remat Request Form) from the investor, he duly verifies the form. He performs detailed scrutiny of the form and if everything is correctly filled, he issues an acknowledgement slip that is stamped and signed.

Intimating Depository about request

After successful verification and completion of all formalities, Depository participant informs Depository (NSDL or CDSL) of rematerialisation request by the client. Depository participant informs depository of such request electronically by entering such request in his software known as DPM. DPM will generate an RRN (Rematerialisation Request Number).

Forwarding of request by Depository to Issuer/ R&T Agent

The depository will now confirm the rematerialisation request of the client to the registrar and transfer agents of the company. The depository will forward all concerned details and documents along with such request.

Verification and processing of request by Issuer/ R&T Agent

On receiving the rematerialisation request from depository, the issuer authorises and checks all details. He may raise objections and demand rectification for such objections to process the request. He informs about all the processing of request and several objections to the Depository Participant.

Request confirmation & printing of certificates

Once all details are verified and found correct, Issuer/ R&T Agent accepts the rematerialisation request. He will send the confirmation of such request to the Depository (NSDL and CDSL). Issuer/ R&T Agent will now initiate the process of printing new physical certificates for the client.

Dispatch of certificates

After successful processing of rematerialisation request and printing of new certificates, these certificates are dispatch to investor by Issuer. Shares get distinct numbers through these certificates by Registrar and Transfer Agent.

Updation of accounts by Depository & informing DP

Depository on receiving the confirmation of request will update the accounts of the client. It will download all information send to Depository Participant. He will inform about the progress of request to DP. The DP will now inform the investor about his rematerialisation request. This way the whole rematerialisation process takes places and takes up to 30 days.