Dematerialisation of Shares
Converting a company's physical share certificates into electronic form held with a depository, a step now mandatory for most unlisted public companies and increasingly expected of private companies.
Dematerialisation involves a company first getting International Securities Identification Number (ISIN) registration by tying up with a depository (NSDL or CDSL) through a Registrar and Share Transfer Agent, after which shareholders surrender physical certificates through their depository participant to have equivalent electronic shares credited to their demat account. Unlisted public companies are required to hold shares only in dematerialised form for most transactions, and many private companies are moving to demat voluntarily for ease of transfer.
What our dematerialisation service covers
Setting up the ISIN and moving existing certificates to electronic form.
- Appointing a Registrar and Share Transfer Agent (RTA)
- Coordinating with NSDL or CDSL to obtain an ISIN for the company's shares
- Executing tripartite agreements between the company, RTA and depository
- Assisting shareholders with account opening and dematerialisation requests
- Reconciling physical share certificates surrendered against electronic credits
- Advising on the compliance timeline applicable to unlisted public companies
Key elements of dematerialisation
Each of these needs to be in place before shares can move to electronic form.
ISIN Allotment
A unique identification number allotted to the company's shares by the depository.
Depository Participant
The intermediary through which shareholders hold and transact in dematerialised shares.
RTA Coordination
The Registrar and Share Transfer Agent processes the actual conversion requests.
Our process
From initial consultation to completion.
RTA Appointment
Engaging a SEBI-registered Registrar and Share Transfer Agent for the company.
ISIN & Agreements
Obtaining the ISIN and executing agreements with NSDL or CDSL.
Shareholder Dematerialisation
Assisting shareholders in surrendering certificates and crediting demat accounts.
Ongoing Reconciliation
Reconciling the register of members against depository records on a regular basis.
Why dematerialisation is becoming mandatory
What sets our approach apart.
Unlisted public companies must comply
Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules requires most unlisted public companies to hold shares only in demat form.
Transfers are faster and more secure
Electronic shares avoid the risk of lost, forged or damaged physical certificates.
Investors increasingly expect it
Institutional investors often require demat holding as a condition of investment.
Dematerialisation of Shares questions answered
What people ask before engaging us.
Need to dematerialise your company's shares?
We'll coordinate the RTA, ISIN and depository process end to end.
