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Dematerialisation Of Shares in Chennai

Dematerialisation, or "Demat," is the process of converting physical share certificates into electronic form. In today's digital age, holding shares in dematerialized form is highly recommended, and for unlisted public companies, it is now mandatory. Dematerialisation eliminates the risks associated with physical certificates (theft, loss, damage) and facilitates faster, safer, and more convenient trading and transfer of securities.

Dematerialisation (often shortened to "Demat") is the process of converting physical share certificates and other securities into an electronic or digital format. These electronic holdings are then stored in a "Demat account" with a Depository Participant (DP).

In India, the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) have progressively mandated dematerialisation to enhance transparency, security, and efficiency in the capital markets.

Laams Tax Consultancy offers comprehensive services for the Dematerialisation of Shares, guiding companies and shareholders through the entire process. We ensure a seamless conversion from physical to electronic format, enhancing liquidity and security of your investments.

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Mandatory Documents

Registration Process

Benefits

Common Mistakes

Why Choose Us

Requirements and Eligibility Dematerialisation Of Shares

Demat Account

Shareholders must have an active Demat account with a Depository Participant (DP) registered with NSDL or CDSL.

Physical Share Certificates

Original physical share certificates that are to be dematerialized.

Company Registrar and Share Transfer Agent (RTA)

The Pvt. Ltd. Company must have an RTA registered with SEBI to facilitate dematerialization.

Documents Required for Dematerialisation of Shares in Chennai

1. Dematerialisation Request Form (DRF)

The Dematerialisation Request Form (DRF) must be obtained from your Depository Participant (DP) and duly filled in with complete details of the shares. It should be signed by all holders in the same order as on the share transfer certificates. This form initiates the process of converting physical shares into electronic format.

2. Original Share Certificates

You must submit the original physical share certificates along with the DRF. The words “Surrendered for Dematerialisation” should be clearly written across each certificate. These are sent to the Registrar and Transfer Agent (RTA) for verification before demat processing.

3. KYC Documents

Self-attested copies of PAN card and valid address proof (like Aadhaar, Passport, or utility bill) are required for all shareholders involved in the dematerialisation. These documents verify the identity and residential details of the investor. Consistency with existing records is essential to avoid rejection.

4. Demat Account Details

A copy of your Demat account statement or a client master report (CMR) from your DP must be submitted. This ensures the credited shares are transferred to the correct electronic account. The account must be active and in the name of the shareholder(s) as per the original share certificates.

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Process or Compliance Filing Online in Chennai

step 1: Open Demat Account

If not already held, open a Demat account with a Depository Participant (DP).

step 2: Submit DRF and Certificates

Submit the Dematerialisation Request Form (DRF) along with the original physical share certificates to your DP.

step 3: DP Verification

The DP verifies the documents and forwards them to the company's Registrar and Share Transfer Agent (RTA).

step 4: RTA Verification and Dematerialisation

The RTA verifies the authenticity of the shares and the request. Upon successful verification, the physical certificates are defaced, and the shares are credited to the shareholder's Demat account electronically. This step completes the conversion.

step 5: Confirmation

The DP confirms the credit of shares to the shareholder's Demat account. The entire process typically takes 15-30 days.

Benefits of Dematerialisation of Shares in Chennai

Enhanced Safety: Eliminates risks of loss, theft, forgery, or damage associated with physical share certificates.

Ease of Transfer: Facilitates quick and easy transfer of shares without physical paperwork, stamps, or multiple signatories.

Reduced Costs: Eliminates stamp duty on transfer and other handling costs associated with physical shares

Increased Liquidity: Shares in Demat form are more liquid and easily tradable.

Common Mistakes or Compliance Penalties

Incomplete Forms: Submitting an incomplete or incorrectly filled Dematerialisation Request Form (DRF).

Mismatched Signatures: Submitting an incomplete or incorrectly filled Dematerialisation Request Form (DRF).

Unclear Certificates: Illegible or damaged physical share certificates.

Why Choose Laams Tax Consultancy for Form AOC-4 Filing

Laams Tax Consultancy offers seamless Dematerialisation of Shares services, assisting the FSSAI, companies and shareholders through the entire conversion process. Our experts ensure accurate documentation and smooth coordination, making your shareholdings secure and easily manageable.

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