– DE-MAT stands for de-materializing.
– De-Materializing is the process of converting possible physical things into electronic format.
Example: Letter on paper is converted into the electronic mail.
– In the share market, de-mat means converting physical share certificates into the electronic balance.
And,
– An account that holds your physical shares in an electronic format. is called a de-mat account.
Step 1. Open De-mat Account with any of the depository participants (DP) i.e brokers.
Step 2. After successful account opening, ask the broker that, the de-mat account is under NSDL or CDSL.
Step 3. If your de-mat account is under NSDL then you will get the De-materialization request form (DRF Form) at NSDL website. You can also get this form from your broker as well.
Step 4. You have to fill up the DRF form with the basic details like your personal details, share details etc. Also you need to attach the proof of identity (POI) and proof of address(POA) with the DRF form.
Step 5. If your de-mat account is under CDSL then you have to do the same thing mentioned in step 4.
Step 6. Submit this DRF form to the broker.
Step 7. Broker will verify the form and send it to the Registrar & Transfer Agent (RTA).
Step 8. RTA has all records of all the investors. RTA will verify whether the DRF Form details are matched with the records or not. And sends the confirmation to the Depositories (NSDL or CDSL).
Step 9. Depositories converts these physical shares into electronic balance. And updates number of shares in your de-mat account.
This de-materialization process takes upto 15 to 30 days!
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