DEMAT & PLEDGE

DIJO MATHEW

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DEMATERIALISATION
-Dematerialisation is the process by which a client can get
physical certificates converted into electronic balances

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HOW TO DEMAT YOUR
PHYSICAL SECURITIES?
1. Obtain Demat Request Form (DRF) from your DP

2. Fill it properly and sign it

3. Submit DRF and certificates to your DP

Remember 1. DRF should be signed by all holders.

2. Pattern of holdings in the certificates should match with demat
account.
3. Separate DRF should be submitted for –
 Each ISIN
 Free and locked in securities
 Securities locked-in for different reasons and different lock-in
release dates
PROCEDURE OF
DEMAT AT DP

Primary Entry is done at

Verify the DRF along with branches before despatching
certificates received to DP
Dispatch DRF and
certificates to
concerned Issuer / RTA
at designated address
within 7 days of receipt

Ensure defacement and mutilation

of the certificates Mention system generated
Demat Request Number
(DRN) in DRF and authorise
DRF
 CHECK LIST-BRANCH
LEVEL

1) Ensure that the name and status of the customer in physical share
certificate and demat account is exactly same. (If different, please
advise customer to contact RTA for procedure to be followed and
attach mail communication from RTA on resubmission).
2) Customer signature(s) in the DRF should match with the
one in demat account (for signature check - Drisya Applications >>
DPSecure NSDL Back Office >> Queries >> View Signature).
3) Branch official signature must be affixed in DRF in the field
specified for the same.
4) corrections/Modifications made in DRF form should be
countersigned by customer
5)Fresh DRF form should be downloaded from the system, if it was
already rejected by RTA/DP previously

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 DEMAT PROCESS
Demat Order

DP Status Intimation Depository

Certificate + DRF +
DRN Confirmation

DRF
+ Statement
Certificate of Holding
Demat
Request

Status Intimation
Client Issuer/RTA
PLEDGE
Pledging here refers to an activity in which the borrower
(pledgor) of funds uses securities as a form of collateral to
secure the funds it borrows or takes from the lender
(Pledgee).

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PLEDGE CREATION

Depository

Pledgee’s DP Pledgor’s DP

Pledge created Request

Confirmation
Agreement
Pledgee Pledgor
(Lender) (Borrower)

Loan

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PLEDGE CLOSURE

Depository

Pledgee’s DP Pledgor’s DP

Confirmation Pledge closed Request

Pledgee Agreement Pledgor

(Lender) (Borrower)

Repayment of Loan
PLEDGE CLOSURE
(UNILATERAL) Depository

Pledgee’s DP Pledgor’s DP

Request Pledge closed

Pledgee Pledgor
(Lender) (Borrower)

Repayment of Loan
PLEDGE INVOCATION

Depository

Pledgee’s DP Pledgor’s DP

Request Pledge invoked

Securities

Pledgee Pledgor
(Lender) (Borrower)

Notice
THANK YOU

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