In today’s time, buying and selling shares is a hassle-free and quick online process. But what if you hold physical shares and want to sell them? According to the Securities and Exchange Board of India’s (SEBI) guidelines, you need to convert your physical shares and securities into electronic form to sell/transfer them. To convert physical shares into a digital form, you must have a Demat account and fill out a DRF. Read on to learn what a DRF is and how to fill it out.
What is a DRF?
The term DRF stands for Dematerialization Request Form. Dematerialization is converting your physical shares and securities into digital or electronic form. DRF is a form that needs to be filled out to request this conversion. However, you need to fulfill the below-mentioned prerequisites for the dematerialization of shares.
a. You need to have a Demat account
b. You must have an account with a Depository Participant (DP)
c. You are required to deface and turn over to the DP any certificates registered in your name
d. You have to fill out and submit a DRF form along with your share certificates
Types of DRF
Based on the different scenarios, there are three types of DRF. Take a look at these various dematerialization forms and learn when they are relevant.
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Transmission-cum-Dematerialization
In the case of joint holdings, if any one or more joint holder(s) dies, the surviving joint holder(s) can fill out this form to get the name of the deceased removed from the physical certificate and then get the securities dematerialized.
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Transposition-cum-Dematerialization
If the name(s) of the investors mentioned on the physical share certificate are the same as the name(s) in the Demat account, but in a different order, this form needs to be filled out.
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Normal Demat Request Form
If the name(s) mentioned on the physical share certificate are the same as of the Demat account and in the same order, and none of the joint holder(s) has died, you need to submit this form. Simply put, if you don’t belong to either of the above-mentioned situations, kindly fill out the Normal Demat Request Form.
How to fill a DRF?
Following are the details mentioned in the DRF that you need to fill out.
1. Contact Number and Date
Enter your existing phone number along with and date of submitting the DRF.
2. Specific Client ID
Every client has a unique client ID, and you need to mention the same here.
3. Account Holder(s)
Mention the name of the holder(s) in the same order as in the Demat account.
4. Face value
Specify the face value of the security as mentioned in the physical share certificate.
5. Quantity of Shares
Mention the number of shares according to the certificate.
6. ISIN
Enter ISIN, a unique 12-digit alphanumeric code given to shares, debentures, bonds, and other securities when the security is admitted into the depository system. Please note that the first two digits of the ISIN code represent the country of registration for security.
7. Details of Security
Put a tick against whether it is free or locked-in securities, along with the total number of certificates.
8. Folio Details
Mention folio number, certificate numbers, distinctive numbers, and quantity of shares. Along with it, enter the certificate number found on the share certificate. Kindly enter the from and to numbers if the numbers are in sequence, however, if that’s not the case, enter them separately in each row.
9. Signature
The holders should do their complete signature in the order of their names in the account, which should match the specimen signature at the registrar.
10. Declaration
Give a declaration that details duly filled in the application form are true to the best of your knowledge.
11. Form ISR-2
To confirm the signature of the securities the banker holds, you need to fill in the following details in Form ISR-2 – company name, type of security, the number of shares, and ISIN.
Conclusion
Dematerialization is converting your physical shares into digital form, and you can raise the request by submitting DRF. Conversion through DRF is easy and hassle-free if you fill out the form diligently. However, if there are some errors, they can be rectified and changed with cooperation and harmony with relevant authorities.
