What is D-Matting of Documents” Why?
With the advent of digital technology and the volume of Transactions increasing manifold from the point of view of the Financial Institutions like Banks, Insurance, Companies, Broking Firms and the Investors at large, Government has initiated long back the facility of safeguarding the title and ownership of assets-particularly Financial Assets in the form of Electronic Document with Government authorized organizations. This facility provides a great relief to the Investors particularly from the drudgery of safe-keeping of Financial Assets like Shares, Debentures, Bonds, Policies etc., in the form of Physical papers and Documents. Instead, all these are safely and securely deposited with authorized Depository Participants ( DP) like NSDL, CDSL etc., in the form of electronic entry document in the name of the owners and proof of such holding will be given by the DP. It is similar to depositing money in Banks and getting a passbook as proof. This facility offers nomination also Stealing or loss of Share certificates, Bonds, Policies etc., could be well avoided. And when we want to sell them or dispose of them, we need to issue “Delivery Slips”(like Bank Cheques) to the DP to transfer them when needed. The benefits like dividend, Interest etc., due on these financial assets will be automatically credited to the Bank account. Similarly, Bonus shares, splitting of shares, Rights shares will be done in the D Mat account automatically. Sebi’s Mandatory Circular dated 8th June 20188 for Compulsory D-matting of Documents. Now Securities & Exchange Board of India- the Regulatory authority for Capital Markets has made it mandatory by a Gazette Notification dated 8th June 2018 that all the shares and documents which are in Physical paper formats are to be necessarily converted into D-Mat form and deposited with the authorized DP. This has to be done at the earliest and before 5th Dec 2018 in any case.
If it is not done then the Physical shares will not be allowed to be sold or transferred or transacted by the Asset owners thereafter. The Physical assets which are in the hands of the Investors may be handed over to the DP who will help them to D-Mat them and issue a statement of Holding. So all Branch offices may inform all the Clients immediately to avail this facility. In case they do not have D_Mat account the same will be opened with us after getting the account opening forms, KYC documents, Photo, Bank Statements etc.,
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