Depository ordinance also provides to the beneficial owner the facility of converting
electronic holding into share certificates. For rematerialisation the beneficial owner has
to request his Depository Participant for rematerialisation of shares. The concerned
Company will issue new Share Certificates to the Investor for the shares so
rematerialized.
Rematerialisation takes place through the following steps:
1.Beneficial owner requests for dematerialization.
2.Depository participant intimates NSDL of the request through the system.
- NSDL confirms dematerialization request to the registrar.
- Registrar updates accounts and prints certificates.
- NSDL updates accounts and download, details to depository participant.
- Registrar dispatches certificates to investor.
Multiple Depository Concepts
In India the concept of multiple depositories has been adopted. Given the fact
that India has the largest number of shareholders in the World it is reasonable to assume
that dematerialization can take place at a faster pace if there are multiple depositories. It
also creates a competitive environment which will be responsive to the user’s interest and
demands.
National Securities Depository Limited (NSDL), the first depository and the only
player in the market so fare was registered with SEBI on 7th June, 1996. It started its
operations on 8th November, 1996. Since then it has been growing at a faster pace. It is a
public limited company incorporated under the Company’s Act. It is promoted by UTI,
IDBI, NSE and SBI.
The Bombay Stock Exchange and Bank of India have jointly promoted the second
depository in the country, Central Depository Services (India) Limited (CDSL), for
dealing in securities in the electronic form. SEBI granted the certificate of registration to
CDS on 19th August, 1998. Very soon it will become operational.