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NRE and NRO Accounts: Meaning, Benefits and Differences

India is seeing a daily rise in the number of citizens who decide to leave the country in search for better employment possibilities, all the while maintaining financial ties to their family roots in India via monetary transactions. These people are called NRIs. Those who own an Indian passport yet live outside of the country are referred to as NRIs, or Non-Residents of India.

How do these individuals handle their financial transactions with their Indian families? The Indian government strongly values the financial inflow that non-resident immigrants (NRIs) bring into the nation. To facilitate their transactions, the government offers NRO (Non-Resident Ordinary) and NRE (Non-Resident External) accounts.

NRE Account The NRE account provides total security and is denominated in Indian rupees. These accounts might be fixed deposit, recurring, savings, or current accounts. When you deposit foreign currency into the account, it gets converted to Indian rupees. Without any issues or limitations, you can move your money (principal and interest amount) from an NRE account to a foreign account. The money you put into these accounts must be generated outside of India.

NRO Account To handle their money received in India, non-resident Indians (NRIs) maintain current or savings accounts in India. Account customers have easy access to deposit and manage their rupee funds. You can receive money from the account in either foreign or Indian currency. You and a local Indian or even an NRI may jointly apply for an NRO account. You can even move money from your existing NRE account. However, TDS (Tax Deducted at Source) applies to the interest you earn in this account. Withholding Tax at the Source (TDS).

Difference between NRE and NRO accounts If you’re an NRI who wants to secure your earnings in India or is searching for a dependable means to send money to your family in India. If you’re looking to open a bank account in India, you’ve come to the correct spot. Here are the key distinctions between an NRE and an NRO account to assist you trade money in a safer and more comfortable way.

CLICK ON LINK TO READ FULL ARTICLE HERE: https://glcwealth.com/blog/nre-and-nro-account-meaning-benefits-difference/

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Getting Back Lost Shares, Dividends Now Made Easier

So far, around Rs 200 crore has been restored to the rightful claimants to whom the funds belong.

One of the oldest vexing issues in equity investing, that of lost money and shares, is well on its way to getting solved with the establishment of a digital process for recovering old dividends and shares by the Investor Education and Protection Fund Authority (IEPFA).

Read Full Article HERE

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A Proper Guide to Recovering Lost Share Certificates

Discover the comprehensive process of obtaining duplicate share certificates in India, essential for shareholders safeguarding their ownership amidst changes and losses. This guide navigates the drawn-out procedure, ensuring investors reclaim their assets effectively. Read full Article here: https://glcwealth.com/blog/proper-guide-recovering-lost-share-certificates/

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HOW LONG IS A WILL VALID FOR?

VALIDITY OF WILL

According to Section 2 (h) of Indian Succession Act, 1925, “Will” means the legal declaration of the intention of a testator with respect to his property which he desires to be carried into effect after his death.

A will is a legal piece of document in writing that enables an owner of a property (testator) to transfer his property to any person of his choice, where in the transfer takes place only after the death of the testator irrespective of the fact as to when the will was made. In legal terminology, this process of transferring property through the probate of will is regarded as ‘Testamentary Succession’.

In Testamentary Succession, the transfer takes place on the whims and fancies of the Will-maker or testator and not by the operation of law. By the virtue of will, a testator can vest his estate in the name of any person of his choice who will inherit all the properties named in the will once the testator dies. There can be one or more persons named in a will as per the discretion of the will-maker. In case of more than one person, the testator can specify the ratio of division of the property amongst the heirs but if he fails to do so then it is generally divided in equal proportions to every legal heir mentioned in the will.

HOW LONG IS A WILL VALID FOR?

As a general rule, a will is valid if it is written voluntarily by the real owner in relation to his legally owned assets and properties under no force or pressure.

The real question arises as to for how many years a will is said to be valid and effective? A will exists in perpetuity and is valid for time-immemorial after the death of the testator and there is no bar on its enforcement. The beneficiary in whose name the will is written gets an indefinite right to get it executed anytime after the death of the testator as the will remains valid for time immemorial. There is no expiry date in case of Will and no authority can enforce a restriction or limit on the time period of execution of will.

DO WILLS EXPIRE?

A will once made cannot expire suo-moto (on its own). The only way a will can expire is when the testator revokes his own-made will or makes a new one declaring the previous one void/invalid. If the same is not declared, then also the newly made will always prevails over the older one(s). A will can also expire if it is proved in the court of law that the will was made under coercion, force, pressure or undue-influence as it would amount to fraud and as an exception to rule of law, ‘fraud vitiates everything’. In case of fraud being proved, it makes the will void-ab-initio (invalid from the inception) and it will be deemed that the will expired or was never made at all.

Visit our Website :https://iepfclaim.in/how-long-is-a-will-valid-for/

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Getting back unpaid dividends, unclaimed shares

Investing money in various financial instruments such as stocks, bonds, mutual funds and other securities can help generate substantial returns over time, along with the potential to receive passive income through dividends. Investors get much calculative while investing because at a point of time they will be expecting a handsome return from their investments. However, in some cases, the dividends accruing on these investments remain unpaid because of various reasons, such as when a company declares a dividend but is unable to send it to the shareholders due to incorrect mailing addresses, lost cheques or failure on the part of shareholders to encash the dividend cheques. In some cases, shareholders may not get the credit of dividends to their bank accounts in the first place because of changes in their bank account details or the accounts becoming dormant.

Unclaimed shares can occur if a shareholder forgets about their investments, passes away without leaving clear instructions for their heirs, or fails to update their contact information with the company because of which they don’t get the dividends. In some cases, the shareholder may not even be aware that they own shares in a particular company due to various corporate actions. In both cases, the company is required to hold the unclaimed dividends and shares in trust for the shareholder. These unclaimed dividends are then transferred to the Investor Education and Protection Fund (IEPF) account, which is managed by the Ministry of Corporate Affairs.

The IEPF Authority was established by the government under the Companies Act 2013 with the aim of promoting investor education and awareness, as well as protecting the interests of investors. Its significance can be highlighted by the fact that by the end of the Financial Year 2022, it is safeguarding unclaimed dividends of listed companies to the tune of a staggering Rs 5685 crores and a staggering ~ 117 Crores of unclaimed shares have been transferred to the IEPF Authority.

As per Section 125 (2) (c) and Rule 7 (1) of the Investor Education and Protection Fund Authority of the Companies Act 2013, companies should transfer the amount of the unpaid dividends to the IEPF Authority’s account. According to the IEPF rules, shareholders can claim amounts by submitting the IEPF-5 Form for unclaimed dividends, matured debentures, matured deposits, and shares, refundable application fees, interest on fractional share sale proceeds, preference share redemption proceeds, etc., that are unclaimed for a minimum time period of 7 years.

Also, the IEPF maintains a database of unclaimed dividends and shares, and investors can claim their such dividends and shares by following the prescribed process. The objective of the IEPF is to ensure that the unclaimed dividend amount is returned to the rightful owners and that their interests are protected.

During the recent Union Budget 2023 announcement, the Finance Minister emphasized the need for an efficient and streamlined process for investors to reclaim their unclaimed shares and unpaid dividends. As a result, an integrated IT portal will be established to make this process much easier and more convenient. This portal will enable shareholders to claim their unpaid or unclaimed shares/dividend amount through a simple and user-friendly procedure.

Process of getting money back from IEPF

If you have invested in a company’s shares and are facing difficulties in getting your investments back, you can follow the process below to recover your investments from the IEPF:

Step 1: Check the IEPF website

The first step is to go to the IEPF website, which is iepf.gov.in. On the homepage, click on the ‘Claim Refund’ tab to proceed. Then click on the “Upload eForms” link on the left side of the page which will take you to the MCA login page.

Step 2: Login on the MCA Portal

If you have a login id, log in using the same on the MCA Portal and click on “MCA Services” and then click on “IEPF-5”.

Step 3: Fill out the online Form

Next, you need to fill out the refund claim form online on the website. Provide all the required details, such as your name, address, PAN number, and bank details. Also, provide details of your investment, such as the company’s name and the dividends unclaimed.

Step 4: Attach Documents

Attach all the necessary documents, such as your PAN card, cancelled cheque, demat account client master list and any other documents that prove your entitlement to the investment in the company.

Step 5: Submit the Form

After filling out the form and attaching the documents, submit it to the IEPF Authority. Once the form is submitted online, an SRN acknowledgment will be created, which can be used to track the status of your claim.

Step 6: Send physical documents to Nodal Officer

After submission, print the form and send the physical copy duly signed with all supporting documents to the Nodal Officer of the Company.

Step 7: Company will file Verification Report

On receipt of physical documents, the Nodal Officer of the company will verify the documents and send an online E-Verification Report with Approval to the IEPF Authority.

Step 8: IEPF Authority will Approve

The IEPF authorities will verify your claim and may ask for additional documents or information if required. The verification process may take some time, and you may need to follow up with the authority for updates. After verification, the IEPF Authority will send an Approval email to the registered email id of the claimant.

Step 9: Receive the Refund

If your claim is verified and approved, the IEPF Authority will initiate the refund process, and then your amount will be credited to your bank account and the shares to the Demat Account.

However, recovering unclaimed shares and unpaid dividends from the IEPF can be a challenging task for some shareholders, especially senior citizens, NRIs, legal heirs of deceased shareholders for which shareholders might need the assistance of a professional who has the requisite domain knowledge.

Moreover, shareholders can avail various recovery advisors who offer services including issue of duplicate shares, issue of succession certificates, undertaking name deletion, and claim from IEPF. By providing such services, companies aim to simplify the process for shareholders and ensure that they can reclaim their rightful share of unclaimed dividends and shares without any hassle.

Full Article here: https://iepfclaim.in/getting-back-unpaid-dividends-unclaimed-shares/#

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Demat account and why is one necessary?

What is a Demat account and why is one necessary?

Demat account, short for “Dematerialized Account,” is an account that holds securities and investments in an electronic or dematerialized form. It is the equivalent of a bank account but is used for holding and trading financial instruments such as stocks, bonds, government securities, and mutual funds in electronic format. A Demat account is required to deal in shares electronically. Securities are held in this account in an electronic format that has been dematerialized. An investor is unable to trade stocks on the stock market without a Demat account

Importance of Demat Account:

Maintain a record of every transaction.

Minimize paperwork to facilitate easy liquidity.

Facilitates transactions that are quicker and simpler.

Provides a secure and safe place to store securities.

Removes the possibility of certificates being altered / faked / lost / damaged.

Avoids delays in the securities transfer process.

Dematerialization of shares: Dematerialization of shares refers to the process of transferring financial products, such stocks and bonds, from their physical certificates into an electronic or digital format. In the context of securities and investments, dematerialization involves eliminating the need for physical paper documents by representing ownership and transactions in a digital format.

Features of a Demat Account

Here are some essential elements to help you better grasp what a demat account means-

Simple to Reach: Via net banking, it offers quick and simple access to all of your investments and statements.

Simple Securities Dematerialization: All of your physical certificates can be converted to electronic form with the assistance of the depository participant (DP), and vice versa.

Getting Dividends & Benefits on Stock: It makes advantage of simple and quick ways to get dividends, interest, and refunds. Everything is automatically credited to the account. Additionally, it updates investor accounts with stock splits, bonus issues, rights, public issues, etc. using the Electronic Clearing Service (ECS).

Simple Share Transfers:The usage of a demat account has made share transfers considerably quicker and simpler.

Share Liquidity: Selling shares has never been easier, faster, or more convenient thanks to Demat Accounts.

Advance Against Securities: One can also apply for a loan against the securities held in their demat account after opening one.

Demat Account Freezing: For a predetermined duration of time, one can freeze a specific type or number of securities in their demat account. This will eventually prevent funds from being sent into your account from any debit or credit card.

How Demat Account works

The specifics of the shares and other securities registered in your name are kept in a Demat Account. In order to buy and sell shares, a trading account must be opened. The availability of Trading Accounts with online trading capabilities by numerous banks and brokers facilitates the participation of regular investors in the stock market.

Types of Demat Account:

Documents Required to Open:

Proof of Identity (PoI): Aadhaar Card, Passport, Voter ID, Driving License

Proof of Address (PoA): Aadhaar Card, Passport,  Voter ID, Driving License, Recent utility bills (electricity, water, gas), Bank statements.

Passport Size Photographs: Two passport-size photographs are required.

PAN Card: In order to open a Demat account, you must have a Permanent Account Number (PAN) card..

Income Proof (for trading in derivatives): Salary slips, Income Tax Returns (ITR), Form 16

Bank Account Details: A canceled cheque or a copy of your bank statement with the account number and IFSC code.

KYC Documents: Know Your Customer (KYC) documents may include additional forms provided by the Depository Participant (DP) or the brokerage

How to use Demat Account:

Using your client ID or account number, access your online Demat account.

All of your holdings, whether they be bonds, mutual funds, stocks, or securities, will be visible to you in your portfolio.

To trade, you must obtain a trading account after opening a demat account.

You must link your bank account, trading account, and Demat account after opening an account.

Before you may begin trading after linking your accounts, you must submit an order request through your trading account. After that, your broker will put you in touch with the suitable trading platform so you may place your trade.

The exchange will handle your order online.

Depending on the transaction you complete, your Demat account will then be credited or debited, and you will receive a confirmation message via SMS and email.

Using your client ID or account number, access your online Demat account.

All of your holdings, whether they be bonds, mutual funds, stocks, or securities, will be visible to you in your portfolio.

To trade, you must obtain a trading account after opening a demat account.

You must link your bank account, trading account, and Demat account after opening an account.

Before you may begin trading after linking your accounts, you must submit an order request through your trading account. After that, your broker will put you in touch with the suitable trading platform so you may place your trade.

The exchange will handle your order online.

Depending on the transaction you complete, your Demat account will then be credited or debited, and you will receive a confirmation message via SMS and email.

Visit Company Webpage: https://glcwealth.com/blog/what-is-demat-account-and-why-is-one-necessary/

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What is a Succession Certificate and procedure of obtaining it? 

Every person is destined to die at some point of time in their life as death finds its way to all. There can be two main situations after the death of a person who had an estate or some property(s) in their name. He may either die after preparing a Will in the name of any person or group of persons or he may die intestate i.e., without leaving a will behind. The role of the Succession certificate generally comes into play in the latter case.

It is highly probable that he must have owned some movable or immovable properties in his name and might have given or obtained some loan or debts from or to any third party respectively. It is in the interest of justice, equity, and good conscience that those third parties shouldn’t suffer the losses from the death of the testator. There will be a gross injustice if the debts and securities of the third parties aren’t settled. With the help of a Succession Certificate, a person is empowered to undertake the settlements of debts and securities on behalf of the testator. This will save innocent third parties from suffering the wrath of injustice.

What is a Succession Certificate?

A Succession Certificate is a legal document that provides authority to any such person who obtains it from the court of law to collect or pay debts and securities which are payable or accrued in the testator’s name. Since the testator is dead, now the person, who obtains the Succession certificate from the court, steps into the shoes of the testator and becomes legally eligible to settle down the debts and securities on behalf of the testator.

A succession Certificate is a document issued by a court of competent jurisdiction to a person who is able to prove in the court that he/she is the rightful successor of the deceased person. This Succession certificate empowers the successor to realize the debts and securities of the deceased person. But this doesn’t give him the inherent right of Succession over the claimed property of the deceased person because it doesn’t determine the rights, title, or interest of the deceased person to the whole or part of the property.

PROCEDURE FOR OBTAINING Succession Certificate?

A Succession certificate is issued by a district court of proper civil jurisdiction. The process of obtaining it from the court is discussed below:

1)     Preparation of Documents

The first step before filing the petition for Succession Certificate is to do the documentation. There are certain documents that are required to be filed alongside the petition of Succession Certificate that is mentioned below:

a)     Death certificate

b)     Identity Card

c)     Ration card

d)     Written/prescribed application form

e)     Proof of residence of the deceased person (Voter ID / DL / Bank Pass Book etc.)

2)     Petition for Succession Certificate

A petition for Succession Certificate is always filed by the legal heirs of the deceased. The petition is filed in a prescribed format in a court of proper jurisdiction. The petition must contain the below-mentioned details:

a)     Time, date, and place of the death of the deceased.

b)     Details pertaining to other legal relatives or heirs.

c)     Residence or details of properties of the deceased at the time of death within which Judge the jurisdiction falls.

d)     Rights of the petitioner 

e)     Absence of any impediment to the grant of the certificate.

f)     Identification documents like Ration Cards or Passports.

g)     List of the debts or securities for which the certificate is applied for.

h)     No objection certificates from other legal heirs

3)     Court fees

As per what is pleaded in the prayer, an amount of court fees is decided and it is to be borne by the Dominus-lists (petitioner).

4)     Newspaper Notice

Once the application is filed, it will be examined and verified by the court, and will make it public by getting it published in a national newspaper. The court will also notify the other heirs and the respondent.

5)     Issuance of Succession certificate

Even though a ‘no objection certificate’ is filed by the petitioners, the court will wait for 45 days to check the authenticity of the petition and if no objection is raised within 45 days, the court will grant the Succession certificate to the petitioner(s).

6)     Signing of Indemnity Bond

It is the discretion of the court to ask the petitioner to sign an indemnity bond. It is a precautionary step that is taken by the court to prevent any misuse of the Succession Certificate.

CONCLUSION

A succession Certificate is a legal document that is issued by a court of law to the applicant for claiming movable properties of the deceased. This document is mainly issued in cases where the testator dies leaving behind his assets but no will. The court is cautious while granting this certificate to the applicant as it is for the court to ensure that no injustice shall be done to any legal heir to the prejudice of the court.

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Getting back unpaid dividends, unclaimed shares: Insights into the process to claim from IEPF Authority

Investing money in various financial instruments such as stocks, bonds, mutual funds, and other securities can help generate substantial returns over time, along with the potential to receive passive income through dividends. Investors get much more calculative while investing because, at a point in time, they will be expecting a handsome return from their investments. However, in some cases, the dividends accruing on these investments remain unpaid because of various reasons, such as when a company declares a dividend but is unable to send it to the shareholders due to incorrect mailing addresses, lost cheques, or failure on the part of shareholders to encash the dividend cheques. In some cases, shareholders may not get the credit of dividends to their bank accounts in the first place because of changes in their bank account details or the accounts becoming dormant.

Unclaimed shares can occur if a shareholder forgets about their investments, passes away without leaving clear instructions for their heirs, or fails to update their contact information with the company because of which they don’t get the dividends. In some cases, the shareholders may not even be aware that they own shares in a particular company due to various corporate actions. In both cases, the company is required to hold the unclaimed dividends and shares in trust for the shareholder. These unclaimed dividends are then transferred to the Investor Education and Protection Fund (IEPF) account, which is managed by the Ministry of Corporate Affairs.

The IEPF Authority was established by the government under the Companies Act 2013 to promote investor education and awareness, as well as protect the interests of investors. Its significance can be highlighted by the fact that by the end of the Financial Year 2022, it is safeguarding unclaimed dividends of listed companies to the tune of a staggering Rs 5685 crores and a staggering ~ 117 Crores of unclaimed shares have been transferred to the IEPF Authority.

As per Section 125 (2) (c) and Rule 7 (1) of the Investor Education and Protection Fund Authority of the Companies Act 2013, companies should transfer the amount of the unpaid dividends to the IEPF Authority’s account. According to the IEPF rules, shareholders can claim amounts by submitting the IEPF-5 Form for unclaimed dividends, matured debentures, matured deposits, and shares, refundable application fees, interest on fractional share sale proceeds, preference share redemption proceeds, etc., that are unclaimed for a minimum period of 7 years.

Also, the IEPF maintains a database of unclaimed dividends and shares, and investors can claim such dividends and shares by following the prescribed process. The objective of the IEPF is to ensure that the unclaimed dividend amount is returned to the rightful owners and that their interests are protected.

During the recent Union Budget 2023 announcement, the Finance Minister emphasized the need for an efficient and streamlined process for investors to reclaim their unclaimed shares and unpaid dividends. As a result, an integrated IT portal will be established to make this process much easier and more convenient. This portal will enable shareholders to claim their unpaid or unclaimed shares/dividend amount through a simple and user-friendly procedure.

Process of getting money back from IEPF

If you have invested in a company’s shares and are facing difficulties in getting your investments back, you can follow the process below to recover your investments from the IEPF:

Step 1: Check the IEPF website

The first step is to go to the IEPF website, which is iepf.gov.in. On the homepage, click on the ‘Claim Refund’ tab to proceed. Then click on the “Upload eForms” link on the left side of the page which will take you to the MCA login page.

Step 2: Login on the MCA Portal

If you have a login ID, log in using the same on the MCA Portal click on “MCA Services” and then click on “IEPF-5”.

Step 3: Fill out the online Form

Next, you need to fill out the refund claim form online on the website. Provide all the required details, such as your name, address, PAN number, and bank details. Also, provide details of your investment, such as the company’s name and the dividends unclaimed.

Step 4: Attach Documents

Attach all the necessary documents, such as your PAN card, cancelled cheque, demat account client master list, and any other documents that prove your entitlement to the investment in the company.

Step 5: Submit the Form

After filling out the form and attaching the documents, submit it to the IEPF Authority. Once the form is submitted online, an SRN acknowledgment will be created, which can be used to track the status of your claim.

Step 6: Send physical documents to the Nodal Officer

After submission, print the form and send the physical copy duly signed with all supporting documents to the Nodal Officer of the Company.

Step 7: The company will file a Verification Report

Upon receipt of physical documents, the Nodal Officer of the company will verify the documents and send an online E-Verification Report with Approval to the IEPF Authority.

Step 8: The IEPF Authority will Approve

The IEPF Authority will verify your claim and may ask for additional documents or information if required. The verification process may take some time, and you may need to follow up with the authority for updates. After verification, the IEPF Authority will send an Approval email to the registered email ID of the claimant.

Step 9: Receive the Refund

If your claim is verified and approved, the IEPF Authority will initiate the refund process, and then your amount will be credited to your bank account and the shares to the Demat Account.

However, recovering unclaimed shares and unpaid dividends from the IEPF can be a challenging task for some shareholders, especially senior citizens, NRIs, and legal heirs of deceased shareholders for which shareholders might need the assistance of a professional who has the requisite domain knowledge.

Moreover, shareholders can avail of various recovery advisors who offer services including issue of duplicate shares, issue of succession certificates, undertaking name deletion, and claim from IEPF. By providing such services, companies aim to simplify the process for shareholders and ensure that they can reclaim their rightful share of unclaimed dividends and shares without any hassle.

Read the full Article from our Main Website: https://glcwealth.com/blog/getting-back-unpaid-dividends-unclaimed-shares-insights-into-the-process-to-claim-from-iepf-authority/

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https://iepfclaim.in/how-to-convert-physical-shares-to-demat-form/

HOW TO CONVERT PHYSICAL SHARES TO DEMAT FORM?

There was once a time when the Indian Share Market followed the open outcry system where the investors had to make themselves physically present in order to carry out the buying and selling of shares. In that era, everything used to be on papers and the trading of shares could only be done in physical form i.e., with the help of the physical share certificate which was used as a proof of ownership of physically transferred shares.

With our ever-evolving technology, this process of physical trading of shares became out-dated and redundant. Gradually, this process got overshadowed by the new trends of online trading and got replaced by the technology-backed trading platforms. Now the Indian stock market has evolved to offer better features and ease of trading through online platforms.

Now, as per the new regulations laid down by the governing board i.e., Securities and Exchange Board of India (SEBI) has made it mandatory for the investors to convert their shares and securities in Demat form in order to continue investing, buying or selling of shares. These reforms in the stock market have taken place in order to ensure a smooth and efficient way of trading with the shares viz-a-viz has made it easy for the authorities to maintain a true account of all the transfers of shares.

However, not everyone holds a Demat Account. Some people are still the owners of physical shares. As it is compulsory for all the investors to hold shares in Demat form in order to continue investing and trading, the shift in trends has raised a question that “How can the investors convert their physical shares into Demat form?”.

To understand the process of Conversion/Dematerialization of Shares better, we should first take look at some important terms:

    DEMATERIALIZATION

Dematerialization refers to a process by which physical share certificates of a particular company are converted into an electronic format.

    DEMAT ACCOUNT

When physical shares are converted into Demat form, then they are held in electronic form. In order to hold them in electronic form, there is a requirement to open a depository account, i.e. called as a Demat Account.

    DEPOSITORY PARTICIPANT

A depository participant (DP) is an agent of the depository through which the Demat Account is made, maintained and operated. A DP acts as a middle-men between the account holder and the depository. Any financial service provider, like banks, state financial corporations, stock-brokers, NBFC, etc., can get themselves registered as a DP.

    DEPOSITORY

A depository in an entity that holds securities like shares, debentures, bonds, government securities, mutual fund units etc. of the investors in electronic form on behalf of the investors or security holders. For instance, in India, there are two depositories named National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CSDL) that are registered with SEBI.

STEPS TO CONVERT YOUR PHYSICAL SHARES TO DEMAT FORM

  The first step is to open the Demat Account in the depository registered with SEBI with the help of Depository Participant (DP) by submitting the application form and other KYC documents.

  Thereafter, the investor/shareholder will be obligated to read and sign the terms of agreement mentioning the rights of potential account holder and the DP along with the scheduled charges for the same. A Demat account number will be provided and the Demat Account will be opened.

  Once the Demat Account has been opened, the investor has to send a form called the Dematerialization Request Form (DRF) along with his physical share certificate of the company to the Depository Participant (DP). In cases where the investor holds physical shares of more than one company, then he must submit physical share certificates of all the companies along with a completed DRF form for each of the companies.

  The DP will check and verify the completeness and veracity of all the documents submitted by the Investor. Meanwhile, a Dematerialisation Request Number (DRN) will be issued to the investor as an acknowledgment receipt till the time DP verifies his documents.

  After verifying the documents, DP will send the request of dematerialisation to the company of which the share-holder wants to get his shares converted to Demat format.

  After the approval, the physical shares will be converted to Demat form. Thereafter, the physical shares will be destroyed for the purpose of avoiding misuse or duplicity.

  Once the physical shares are dematerialised, the monetary value of the physical shares will be credited to the   Demat Account which can, later, be used for buying or selling with the ease of online trading.

After following the above-mentioned steps, the Physical share certificates will be said to be converted to Demat format.

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GLC Wealth is India’s leading and most trusted Wealth Recovery Firm. We provide specialized and niche Financial and Legal Advisory Services for the Recovery of Unclaimed Assets held by individuals, corporations, banks, etc. in India. Our firm is led by two sought-after professionals – Mr. Ankit Garg (Qualified CA & Lawyer – King’s College London) and Mr. Sanchit Garg – ex Investment Banker (IIT – IIM) who are further backed by an experienced team of Lawyers / CAs / CS.

Recovering Unclaimed Assets:

Visit our Website: https://glcwealth.com/

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The guide provides a comprehensive overview of the transmission of shares, delineating it from the transfer of shares and detailing the process involved. Transmission, primarily occurring due to the death of a shareholder, is contrasted with voluntary transfers. The document elaborates on key legal documents required, such as probate of will, succession certificate, and letter of administration, based on the circumstances of the deceased's estate planning. Additionally, it outlines the steps involved, including obtaining a death certificate, identifying legal heirs, liaising with the Registrar and Transfer Agent, submitting necessary documentation, transferring shares, updating records, and potentially paying stamp duty. This guide serves as a valuable resource for navigating the intricate procedures surrounding the transmission of shares in compliance with relevant laws and regulations.

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Dematerialization of Shares

Dematerialization, the conversion of physical share certificates into electronic form, has transformed share ownership in financial markets. Mandated by SEBI in 2018, this process streamlines share trading through demat accounts. Dematerialization offers advantages such as reduced risk of loss or theft, efficient transactions, elimination of middlemen, convenience for investors, simplified record-keeping and enhanced security. Investors can manage digital portfolios, track transactions, and receive dividends seamlessly, marking a significant shift in the landscape of modern investments.

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