Page 55 - DCOM504_SECURITY_ANALYSIS_AND_PORTFOLIO_MANAGEMENT

Security Analysis and Portfolio Management

Notes 4. If the same set of joint holders held securities in different sequence of names, these joint
holders by using ‘ Transposition cum Demat facility’ can dematerialise the securities in
the same account even though share certificates are in different sequence of names. e.g., If
there are two share certificates one in the name of X first and Y second and another in the
name of Y first and X second, then these shares can be dematerialised in the depository
account which is in any name combination of X and Y i.e., either X first and Y second or Y
first and X second. Separate accounts need not be opened to demat each share certificate. If
shares are in the name combinations of X and Y, it cannot be dematerialised into the
account of either X or Y alone.
5. Check the demat performance of the companies whose shares are to be given for
dematerialisation.

6. Demat requests received from client (registered owner) with name not matching exactly
with the name appearing on the certificates merely on account of initials not being spelt
out fully or put after or prior to the surname, can be processed, provided the signature of
the client on the Dematerialisation Request Form (DRF) tallies with the specimen signature
available with the Issuers or its R & T agent.
7. A client may, in the normal course, receive demat confirmation in about 30 days from the
date of submission of demat request to the DP.

8. There are special processes for Securities issued by Government of India and simultaneous
transmission and demat.

Procedure

The client (registered owner) will submit a request to the DP in the Dematerialization Request
Form for dematerialisation, along with the certificates of securities to be dematerialised. Before
submission, the client has to deface the certificates by writing “SURRENDERED FOR
DEMATERIALISATION”. The DP will verify that the form is duly filled in and the number of
certificates, number of securities and the security type (equity, debenture etc.) are as given in the
DRF. If the form and security count is in order, the DP will issue an acknowledgement slip duly
signed and stamped, to the client. The DP will scrutinize the form and the certificates. This
scrutiny involves the following:
1. Verification of Client’s signature on the dematerialisation request with the specimen
signature (the signature on the account opening form). If the signature differs, the DP
should ensure the identity of the client.
2. Compare the names on DRF and certificates with the client account.
3. Paid up status

4. ISIN (International Securities Identification Number)
5. Lock - in status
6. Distinctive numbers
In case the securities are not in order they are returned to the client and acknowledgment is
obtained. The DP will reject the request and return the DRF and certificates in case:
1. A single DRF is used to dematerialise securities of more than one company.
2. The certificates are mutilated, or they are defaced in such a way that the material
information is not readable. It may advise the client to send the certificates to the Issuer/
R&T agent and get new securities issued in lieu thereof.

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