Expanding digitalization is changing the way our world works. Everything from the smallest to biggest business transactions, from earning money to investing money for wealth creation, digitization is the need of hour. This fast-paced world that is quickly moving towards digital assets also triggered the very need for dematerialization services. Through which you can get your Physical Share Certificates converted to Demat form.
While we think of demat services as a uniform offering, many nuances with the service provider from commitment gaps, to ambiguous processes often give varied experiences to the owners of physical share certificates.
In this article, we will cover the meaning, benefits & how one can take advantage of the high-functioning Demat services & make a difference in their trading experience.
What is a Demat Account?
In a Demat Account, your equities are held in a Dematerialized form (digital/electronic mode) rather than physical certificates. As an investor, you must open a Demat account with a Depository Participant in order to purchase and sell shares in the Indian stock market (DP).
What Are the Advantages of Converting Physical Shares to Demat form?
The benefits of owning stocks in Demat form are numerous, some of them are as follows:
- You can invest online.
- Electronic settlements are convenient and quick.
- There will be less documentation on the occurrence of a stock transfer.
- You can buy or sell any number of stocks.
- The transaction cost is significantly lesser than that in a typical marketplace because you wouldn’t have to incur stamp duty charges.
- Your Securities are safe from any calamity.
- International trading of stocks is easily possible – even buying international securities is just a click away
- You can engage in Loan against securities or get a lien on your Demat account in case of emergencies.
But, why is it important to convert physical certificates into Demat Form?
The procedure of converting physical shares and investments into digital or electronic equivalents is known as the dematerialization. The main goal is to make the process of purchasing, selling, transferring, and holding shares as simple as possible while also making it cost-effective and error-free. The Securities and Exchange Board of India (SEBI) has repeatedly called for the conversion of all physical stock certificates to digital format.
But, why is it that the capital markets regulator is so adamant about this?
The settlement procedure is quickened and simplified as a result of this endeavor. It will also aid in the abolition of share transfer agent fraud. That is where many of our clients shared appreciation for our high-functioning services that are based on absolute trust and credibility. Though, many individuals believe that converting physical shares to Demat is a time-consuming procedure. It can be simplified and streamlined by expert physical share consultants. The procedure is straightforward and usually takes two to three weeks.
Investors will have more convenience once the shares have been dematerialized. Buying and selling securities would be accessible in a fraction of second. The Demat form also protects the shares against physical damage.
If you find the process to be too time-consuming or tedious, you can contact our relationship managers to have it completed on their end.
Some of the problems that our high-functioning Demat support vertical is aggressively solving for our clients across the globe include:
1. Transfer of Shares – Starting in 2019, only electronic shares can be sold or exchanged at stock exchanges, as mandated by market regulator Securities and Exchange Board of India (SEBI). It doesn’t imply you can’t have actual shares; it merely means you can’t sell or transfer them. If you have physical shares that you want to transfer to your loved ones, you can do so by following the registrar’s instructions or by contacting a financial intermediary like Rurash for assistance.
2. Name / Signature Change – Many times, you will not be using the same name, surname, or signature on physical certificates. If that’s the scenario, you ought to make some changes. The identities on the Demat account and the physical share certificate must be accurately reflected during the process.
Any Shareholder who wishes to change or update his or her name on his or her Share Certificates must submit an application to the Company/RTA/ intermediary together with the necessary papers.
3. IEPF Claim Settlement / IEPF Unclaimed Dividend – The Investor Education and Protection Fund (IEPF) was established to raise investor awareness and defend their interests. A company transfers matured deposits, debentures, funds due or any interests to the IEPF Authorities. An investor can claim these amounts from the authorities directly. An application can be filed by the deceased person’s heirs as well. Rurash Financials, on the other hand, assists investors in this procedure.
In India, there are over 50 distinct registrars, making it difficult for an investor to contact each one individually for each folio. Additionally, the old shares may be owned by an investor. As a result of corporate actions such as mergers, demergers, splits, bonuses, and so on, they may not have obtained new share certificates. Our Physical Share Consultants at Rurash Financials can then assist the investors in reclaiming the fresh share certificates before converting them to Demat.
Apart from this we are offering Physical to Demat Conversion services for a number of cases like Unclaimed dividends, Lost certificate cases, Share transfer, Share transmission, Person living abroad, Undelivered share certificates, Issue of duplicate Certificates, Torn physical shares, Post amalgamation, split issue, Bonus declared, Duplicate cum transmission cases, etc.
RURASH is amongst the best Indian investment management firm, providing financial solutions to augment the client’s wealth and facilitate building a legacy.
For any guidance regarding financial instruments, Connect with the relationship manager now on Call at +91 22 4157 1111 or write to: firstname.lastname@example.org.
Also Read: Tax Implications for Dematerialization of Shares & Why now is the time for physical to Demat conversion.