Central Depository Service
What one need to do after obtaining BOID number to dematerialize their securities?
After obtaining the BOID, the Beneficial Owner who wants to de-mat the securities need to submit the form along with the securities to the concerned DP. Then the DP makes the necessary data entry in the system and channels the form to concerned entities for approval and after all is finished the Beneficial Owner is informed. To complete the process of de-mat, there is requirement of 10 days in which within 7 days, the document need to be processed by DP and by last 3 days, the concerned RTA need to make the necessary process. In case there is delay in system of more than 10 days then the concern Beneficial Owner can complain to CDSC. To de-mat the securities, there is no transaction fee charged by the DP.
The following chart will help us to be clearer about the dematerialization system:
FIGURE 2 : DEMATERIALIZATION PROCESS
In case, one wanted to rematerialize their securities, what need to be done?
Similarly, like the process of dematerializing, the Beneficial Owner will need to go to concern DP and submit the form of rematerializing. Then, the DP will channel the form to RTA within two days of submitting and make the necessary entry in the system. After that, the RTA will need to provide the Beneficial Owner with the securities within the 15 days, from the date the RTA received form from DP. The distribution of physical securities to the concerned Beneficial Owner by the RTA will need to be informed to CDSC then the CDSC will make necessary settlement in the account of Beneficial Owner and DP. To obtain this service, the Beneficial Owner will need to pay certain charge accrued to DP transaction fee which is mentioned in the heading of Depository Participant (DP).
The following chart will help us to be clearer about the dematerialization system:
FIGURE 3: REMATERIALIZATION PROCESS OF SECURITIES
