Rematerialisation Process

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What is re-materialization?

  • Rematerialization is the exact reverse of dematerialization. It Refers to the process of issuing physical securities in place of securities held electronically in book-entry form in a depository.
  • Under this process, the depository account of a beneficial owner is debited for the securities sought to be re-materialized and physical certificates for the equivalent number of securities is/are issued.

Re-materialization Process

1.The DP should provide rematerialisation request forms (RRF) to clients

2. The client should complete RPF in all respects and submit it to the DP.

3. The DP should check RPF for validity, completeness and correctness. In particular, the following points should be checked

  • There is sufficient free balance available in the client’s account to honor the re-materialization request.
  • The name of client on RRF is exactly the same as that in the client account.
  • In case of joint holding, the order of names appearing in RRF is the same as in the client’s account.
  • Details like security type, face value, issuer’s name and lock-in status are filled-in correctly.
  • The client has indicated his opinion to receive physical certificates either in jumbo lot for the entire quantity requested or in a market lot.
  • Separate RRF is submitted for ‘free and locked-in securities’. Securities locked-in for a different reason; each ‘ISIN’ securities of different paid-up value; and each client account.
  • RRF is signed by ‘the sole holder in case of single holding; all joint holders in case of joint holding, authorized signatories in the case of corporate accounts, constituted attorney in the case of NRI accounts.

4) If RRF is not found in order, the DP should return the RRF to the client for rectification.

5) If RRF is found in order the DP should accept RRF and issue an acknowledgement to the client.

6) DP should enter the re-materialization request in DPM. DPM will generate a remat request number (RRN) which should be mentioned on RRF.

7) An authorized person, other than one who entered the RRF details in DPM, should verify the details of RRN  and release a request to the depository.

8) DP should complete the authorization of RRF and forward to the issuer or its R & T agent for re-materialization within seven days of accepting it from the client.

9) The issuer of its R & T agent should verify the RRF for validity, completeness and correctness. It should also match the details with the intimation received from the depository against the same RRN.

10) In case the issuer or its R & T agent finds RRF in order, it should confirm the remat request. The issuer or its R & T agent should then proceed to issue the physical security certificates and dispatch them to the beneficial owner.

11) The DP, on receiving confirmation of debit entry in DPM, should inform the client accordingly. The entire process takes a maximum of 30 days. No trading is possible on the securities sent for remat.

This is the complete process of re-materialization of securities.