Dematerialisation is the process by which physical share certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor’s account maintained with his/her depository participant (DP). It is like having a bank account where instead of money, you hold securities in your account.

In order to dematerialise physical securities held by an investor, he has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical share certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number.

ISIN (International Securities Identification Number) is a unique identification number for a security. India follows the norms stipulates by Association of National Numbering Agency (ANNA) which is the international body for issue of ISINs. National Securities Also note that ISIN of a security changes in case of certain corporate action such as split in share par value, consolidation of share capital etc. Hence you have to quote the correct ISIN at the time of giving dematerialisation request as well as at the time of transfer of shares.

Who is a Stock Broker?

A stock broker is a person or entity, which is a member of a stock exchange. A stock broker acts as a facilitator to carry out transactions of investors on a stock exchange. Thus if you want to buy say 100 shares of a company XYZ (which is listed on say National Stock Exchange) in the secondary securities market, he would have to go through a stock broker registered in NSE to carry out his transactions on National Stock exchange.
Whether stock brokers are governed by any Rules and Regulations?

Stock brokers are governed by SEBI Act, 1992, Securities Contracts (Regulation) Act, 1956, Securities and Exchange Board of India [SEBI (Stock brokers and Sub brokers) Rules and Regulations, 1992], Rules, Regulations and Bye laws of stock exchange of which he is a member as well as various directives of SEBI and stock exchange issued from time to time.
What are the documents to be signed with stock broker?

Before start of trading with a stock broker, you are required to furnish your details such as name, address, proof of address, etc. and execute a broker client agreement. You are also entitled to a document called Risk Disclosure Document, which would give you a fair idea about the risks associated with securities market. Please go through all these documents carefully.
What to check while registering with a stock broker?

Every stock broker is required to be a member of a stock exchange as well as registered with SEBI. Examine the SEBI registration number and other relevant details can be found out from the registration certificate issued by SEBI.