Know all about transposition-cum-demat facility
Changing the order of names in which a security is held is called transposition. Sometimes, a shareholder owns physical certificates jointly but the names are in a different order.
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Changing the order of names in which a security is held is called transposition. Sometimes, a shareholder owns physical certificates jointly but the names are in a different order. Since jointly held physical shares can be dematerialised and held in the same demat account only when the order of names is identical, the investor would have to open as many multiple demat accounts as the different name orders.
To avoid this, the investor could use the transposition-cum-demat facility offered by CDSL/NSDL. This helps a customer to transpose the names of joint holders in the desired order while processing the dematerialisation of certificates. So if A and B hold a demat account and some certificates are held in the names of B and A and others in the names of A and B, the shares can be dematerialised in the demat account of A and B through this facility.
Application & format: The application should be submitted on the Transposition Request Form (TRF), along with the Demat Request Form (DRF) and the share/security certificates, to the DP. The form format is available on the NSDL website https://nsdl.co.in/downloadables/Annexure%20OA% 20-%20Form%20for%20 Transposition%20cum%20De mat.rtfemat.rtf
Form: Provide details such as client identity, DP ID, names of the demat account holders in the proper order and names and signatures as they appear on the physical certificates.
Signature & verification: Signatures of all the holders on the TRF should tally with those in the DP’s records. The DP forwards the share certificates and TRF/DRF to the registrar & transfer agent, who verifies the number of certificates and details on the share certificates against the TRF. After this, the demat shares are credited to the DP account.
Points to note
No new name can be added during the transposition process. Similarly, the existing names cannot be deleted.
CDSL does not collect any fee from depository participants for processing transposition-cum-demat requests.
A separate TRF has be filled for each International Securities Identification Number.
The content on this page is courtesy Centre for Investment Education and Learning (CIEL).
To avoid this, the investor could use the transposition-cum-demat facility offered by CDSL/NSDL. This helps a customer to transpose the names of joint holders in the desired order while processing the dematerialisation of certificates. So if A and B hold a demat account and some certificates are held in the names of B and A and others in the names of A and B, the shares can be dematerialised in the demat account of A and B through this facility.
Application & format: The application should be submitted on the Transposition Request Form (TRF), along with the Demat Request Form (DRF) and the share/security certificates, to the DP. The form format is available on the NSDL website https://nsdl.co.in/downloadables/Annexure%20OA% 20-%20Form%20for%20 Transposition%20cum%20De mat.rtfemat.rtf
Form: Provide details such as client identity, DP ID, names of the demat account holders in the proper order and names and signatures as they appear on the physical certificates.
Signature & verification: Signatures of all the holders on the TRF should tally with those in the DP’s records. The DP forwards the share certificates and TRF/DRF to the registrar & transfer agent, who verifies the number of certificates and details on the share certificates against the TRF. After this, the demat shares are credited to the DP account.
Points to note
No new name can be added during the transposition process. Similarly, the existing names cannot be deleted.
CDSL does not collect any fee from depository participants for processing transposition-cum-demat requests.
A separate TRF has be filled for each International Securities Identification Number.
The content on this page is courtesy Centre for Investment Education and Learning (CIEL).
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