Can electronic holdings be converted back into Physical Certificates?
Yes. The process of reconverting demat shares to physical shares is called rematerialisation. If one wishes to get back his securities in the physical form, one has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account.

The process of rematerialisation is outlined below:

1. Investor makes a request for rematerialisation for the electronic holding of shares, which he is holding with a DP.
2. Depository participant intimates depository of the request through the system about the request.
3. Depository confirms rematerialisation request to the registrar of the company whose shares are sought to be rematerialized.
4. Registrar updates accounts and prints share certificates. Certificates also contain distinctive numbers of shares.
5. Depository updates accounts and downloads details to depository participant.
Registrar dispatches physical share certificates to investor.

When to rematerialise?
Security settlement in Indian securities markets takes place only in the demat form and hence, it is advisable to hold shares in the demat form only to quickly sell shares as and when desired. An investor can rematerialise shares only when he has no intention to sell his holdings and wants to hold shares only for the purpose of investment for the long term.

Can one pledge dematerialised securities?
Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities.

What should one do to pledge electronic securities?
The procedure to pledge electronic securities is as follows:
• Both investor (pledgor) and the lender (pledgee) must have depository accounts with the same depository;
• Investor has to initiate the pledge by submitting to DP the details of the securities to be pledged in a standard format ;
• The pledgee has to confirm the request through his/her DP;
• Once this is done, securities are pledged.
• All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.

How can one close the pledge after repayment of loan?
After one has repaid the loan, one can request for a closure of pledge by instructing the DP in a prescribed format. The pledgee on receiving the repayment will instruct his DP accordingly for the closure of the pledge.

Who would receive the corporate benefits on the pledged securities?
The securities pledged are only blocked in the account of pledgor in favour of the pledgee. The pledgor would continue to receive all the corporate benefits.