Dematerialisation:

 

Dematerialisation is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.

Features:

• Holdings in only those securities that are admitted for dematerialisation by Central Depository Services Ltd (CDSL) can be dematerialised.
• Structure of holding in the securities should match with the account structure of the depository account. Now shares in different order of names can also be dematted.
  
  If the shares are in the name of X and Y, the same cannot be dematerialised into the account of either X or Y alone. However if the shares are in the name of X first and Y second, and the account is in the name of Y first and X second, then these shares can be dematerialised in this account.

Only those holdings that are registered in the name of the account holder can be dematerialised. Physical shares which have not been transferred and are still there with a transfer deed cannot be dematted. Only a few companies have been given the permission to offer Transfer-cum-Demat. The list of these companies can be viewed here.