Demat Account: Charges applicable on converting physical shares into electronic form
Dematerialisation is the process by which a trader or investor converts physical share certificates into electronic shares. Physical shares can be dematerialised if they have the company's name and face value on them. To verify the physical share certificate, visit bseindia.com and enter the company name or ISIN.
If the face value on the certificate does not match the current face value, clients should contact the Registrar and Transfer Agents (RTA) to obtain an updated certificate. This step is essential to ensure that the share certificate is valid and up to date before proceeding with the dematerialisation process. The cost of converting physical shares into electronic form includes various charges that the investor must consider: Broker Charges: Brokers may charge fees for their services in processing the dematerialisation request.
These charges can vary significantly, so it is advisable for investors to inquire about them upfront. Annual Maintenance Fee: Banks and brokerage firms typically charge an annual maintenance fee, ranging from ₹200 to ₹850. This fee is for the upkeep of the investor's demat account.
Transaction Charges: These charges vary from broker to broker and encompass fees for each transaction made when converting shares. Dematerialisation Charges: The cost of converting physical shares ranges from approximately ₹150 to ₹400 per share certificate. The entire process can often be managed online, providing a convenient option for investors.
According to SEBI guidelines, the conversion process should be completed within 21 days; however, for some companies, the process may take longer. Investors should account for potential delays and factor them into their planning. Dematerialisation Request Form (DRF):
. Read more on livemint.com
