Dematerialization

Dematerialization is the process by which you convert physical/material certificates (shares, equities, bonds, debts, etc) into the electronic form. The depository converts your physical holding of securities (backed by paper certificates as evidence of ownership) into electronic balances held in a Demat account with a Depository Participant (DP). A Demat account holder (also called a beneficiary owner) can have securities balances either by converting his existing physical certificates or by buying securities in Demat form. In order to dematerialize your securities, you will have to submit a Dematerialization Request Form (DRF) along with the physical certificates. A DRF authorizes your DP to convert your physical certificates into the electronic format and hold it in your Demat account. When you submit the certificates and DRF, we will enter your request in the depository system (usually through a system called SPEED-e) when you buy from NSDL.

Rematerialization

It is the reversal of dematerialization process. Through this process you convert your e-shares and certificates into the physical form. You can enter into this process any time and we are always at your service in this regard.

Electronic Custody

Electronic Custodial Services include:

	Converting your physical holding into electronic holding (Dematerialization of securities)
	Keeping custody of your holdings in electronic form.
	Transferring the shares in the electronic form from one account to another.
	Facilitating pledge of your electronic securities.
	Giving electronic credit of new share allotments such as public issues, bonus, rights etc.
	Converting your electronic holding into physical holding (Rematerialization of securities)

Pledging

One can take a loan from the bank against the security of one's physical shares by lodging the same with the bank just like a mortgage process. This is called Pledging. Similarly, one can pledge electronic certificates by requesting a DP to lodge it with a bank against a loan. You can pledge your shares in a bank which is a DP or a client of a DP. You may submit the written pledge instruction to your DP. The bank blocks the pledged quantity in your DP Account electronically. Thereafter, the loan becomes available to you. To revoke pledged/hypothecated shares, you need to submit a pledge revocation form with the DP. Upon closure of your loan, the bank closes the pledge in your DP account directly. The shares released in your DP account are once again available to you as free balances. If a pledgee does not return the loan amount, the certificates can be transferred to the bank's ownership. This is similar to the physical shares being transferred in the name of the lender in the event of a default.


Electronic DP Account

This is the interface between the investor (Beneficiary Owner) and the Depository Participant (DP). This is a network account, which can be availed of over the Internet. Every investor registered with Dynamic would be given a unique User ID and a Password (which will be intimated through email after registration). Using the User ID and Password, the user can log into his account and see his balance and transaction details. By logging on to this account, you will be able to view your Holding / Transaction Statement, Bill Statement and communicate to us your transfer instructions.


Transfer of Securities

When you buy shares, you have to inform your Client ID and DP ID to your broker. Your account with us will be credited with securities bought by you on the payout day. On sale of securities, you are required to give us the delivery instruction slip duly signed and the securities will be transferred to the brokers account.