Rohit is a regular investor in the market, electronically holding one thousand equity shares with special voting right shares of Growmore Ltd. He made a request for rematerialisation of his shares to the Company. Rohit a

CS Executive · Capital Market and Securities Laws · PYQS · December 2024
Rohit is a regular investor in the market, electronically holding one thousand equity shares with special voting right shares of Growmore Ltd. He made a request for rematerialisation of his shares to the Company. Rohit also wanted to know, after how many days of rematerialisation, he can trade his shares. As the Company Secretary of Growmore Ltd, explain the meaning of rematerialisation, procedure to be followed for remat and tradability postremat.

Answer & Explanation:

Meaning of Rematerialisation Rematerialisation is the process of converting securities held in electronic form in a demat account back into physical certificate form. For the purpose of rematerialisation, the client has to submit the rematerialisation request to the Depository Participant (DP) with whom he has an account. A client can rematerialise his dematerialised holdings at any point of time. Procedure for Rematerialisation The procedure required for rematerialisation is as under: Client submits a rematerialisation request form (RRF) to the Depository Participant (DP). The DP enters the request in its system which blocks the client's holding. The DP intimates the Depository and simultaneously, sends the RRF to the Registrar/Issuer. The Registrar/Issuer prints certificates and dispatches them to the client. The Registrar/Issuer electronically confirms remat to the Depository. The client's account with the DP is debited. Tradability Post-Rematerialisation The trading of securities is permitted only in electronic form for listed entities. Hence, the securities sent for rematerialisation cannot be traded on the stock exchange. Therefore, Rohit will not be able to trade his securities post-remat in physical form on the exchange.

Topics: Depositories Act, 1996

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