Demat / Remat

How do I open an account with a Depository and will I be periodically informed about the movement in my electronic account?

You may open an account with a Depository Participant (DP) of your choice. As an investor you will interact with National Securities Depository Limited (NSDL) or Central Depository Services Ltd. (CDSL) through your Depository Participant) Your DP will allot you an account number which will serve as a reference for all your future dealings with them. It may be advisable to be aware of the rates that will be charged to you by your DP for various activities.

Your DP will update your account after each transaction, and would periodically furnish you with a statement of holding. You may verify this with your DP at the time of opening your electronic account.

How do I convert my paper certificates into an electronic holding and will I continue to receive corporate benefits?

To dematerialize your holding, you should first have an account with a DP of your choice. You may then hand-over to your DP, the certificates along with the ´Dematerialisation Request Form´ (DRF). Only the securities registered in your name can be submitted for dematerialization. Your DP will then send the DRF and the certificates to LIIPL and an electronic request will also be sent through the NSDL/CDSL network reconfirming the same. LIIPL will verify the documents and if found in order, the dematerialization request will be confirmed to NSDL/CDSL who will in turn inform your DP. In the books of the Company, your folio with LIIPL will be debited and the account of NSDL/CDSL will be credited in respect of such dematerialized securities. NSDL/CDSL in their electronic records will credit the account of your DP. Your DP will then credit your account with the number of securities that have been dematerialized and the securities will thereafter be held in electronic form. This process would take approximately 15-20 days.

Yes, all the corporate benefits such as dividend, interest, bonus shares, rights shares will be issued by LIIPL to the beneficial owners i.e. the accountholders who hold the securities in electronic form. The dividend/interest amounts as and when declared/paid will be sent to you/your bankers directly. The entitlement of rights and bonus shares/debentures wherever applicable, will be credited to the beneficiaries account as per the investors´ option and the terms of the issue.

How do I trade (buy / sell) in electronic form?

You may buy and sell securities in electronic form through the depository by coordinating with your broker and your DP. Such transactions would be simpler and faster. Payments for such transactions would be made in the same way as is done for physical certificates. Securities purchased in electronic form are credited to your account on the very next day of payout with no formalities of filling transfer deeds or applying to the Company for registration. All such transactions are exempt from stamp duty and accordingly no share transfer stamps are required to be affixed.

Such transactions are not routed through the Company and the debit/credit takes place directly in the Depository System. However, corporate benefits would be paid to the person holding such securities on the Record date/ Book closure date as applicable.

How can I reconvert my electronic holding into paper form?

As per the existing guidelines, an investor can choose to reconvert his electronic holding into physical form at any time through his DP. On receipt of the rematerialisation request along with the ´Remat Request Form´ (RRF) the Company will issue fresh certificates.

Tara Jewels Limited (TARAJEWEL.NS)