Describe the process of dematerializing of shares.
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
To dematerialise physical securities, the investor must fill a Demat Request Form (DRF), available with the Depository Participant (DP), and submit it along with the physical share certificates. A separate DRF is required for each ISIN number. The shares are then converted into electronic form and held in a demat account through depositories like NSDL or CDSL.
Source: Chapter 6
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Explanation
- Examiners expect you to mention: DRF, submission of physical certificates, separate DRF per ISIN, and the role of DP/depositories.
- Naming NSDL and CDSL adds value and may fetch full marks.
- Avoid writing about benefits of demat here — that's a different question. Stick to the process only.