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NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation

Demat Request Form (DRF) and Documentation for Dematerialisation

Updated 11 October 2026 · Fact-checked

The Demat Request Form (DRF) is the form an investor signs and gives to a Depository Participant to convert physical certificates into electronic form. The DP checks the account, the form, the certificates and the signatures, marks the certificates 'Surrendered for Dematerialisation', and sends them to the issuer or RTA with the request.

Understand Demat Request Form (DRF) and Documentation

Dematerialisation means converting physical share certificates into electronic holdings in a demat account. The investor cannot do this directly with the company. The request goes through a Depository Participant (DP) where the investor holds a demat account.

The tool for the request is the Demat Request Form (DRF). It is signed by the investor and carries details such as the account number, the name of the issuer, the ISIN, the number of securities and the certificate numbers. A separate DRF is generally used for each ISIN. The DP gives the investor an acknowledged copy.

The DP is the first line of control. Before accepting the securities, it checks that the investor has an active account, that the name on the certificates matches the account holder names (in the same order for joint holders), and that the form and certificates are complete and genuine-looking. It also checks that the securities are admitted with the depository, meaning the ISIN is active.

After these checks the DP stamps or marks each certificate 'Surrendered for Dematerialisation', which stops the certificate from being used for transfer. It then enters the request in the depository system and forwards the DRF and certificates to the issuer or its Registrar and Transfer Agent (RTA). The issuer or RTA verifies and confirms the request electronically, and the depository credits the securities to the account.

For the exam, remember the split of duties. The investor submits the form and certificates. The DP verifies and forwards. The issuer or RTA processes and confirms. The depository credits the account.

Key formulas to remember

Who requests
Investor → DP (with DRF) → depository system → issuer/RTA → confirmation → credit
The investor deals only with the DP, never directly with the depository or issuer for demat.
Mark on certificates
'Surrendered for Dematerialisation'
The DP marks this on each certificate before forwarding. It prevents the certificate from being transferred or reused.
One DRF per ISIN
One DRF ↔ one ISIN (security)
Different securities need separate forms. Many certificates of the same ISIN can go on one DRF.
Name matching
Names and order on certificates = names and order on demat account
Joint holders must appear in the same order. A mismatch makes the request unacceptable.
Acknowledgement
DP gives the investor an acknowledged copy of the DRF
This is the investor's proof that the DP received the request and certificates.

How to solve Demat Request Form (DRF) and Documentation questions

Most questions ask who does what, what is checked, or what is wrong in a given case. Use this sequence.

  1. 1Identify the stage in the question: submission, DP verification, forwarding, issuer or RTA processing, or credit.
  2. 2Decide who is acting: investor, DP, issuer or RTA, or depository.
  3. 3For DP checks, test the account status, name and order match, ISIN activity, completeness of the DRF and certificates, and signatures.
  4. 4Check the certificate treatment: it must be marked 'Surrendered for Dematerialisation' and kept by the DP for forwarding.
  5. 5Look for a mismatch trap, such as different name order, a different ISIN, or a missing signature or account number.
  6. 6Eliminate options that give the investor a direct role with the issuer or that let the DP skip a check.
  7. 7Choose the option that follows the standard sequence of investor, DP, issuer or RTA, then credit.

Quickest way: Role and Check Shortcut

When to use it: Use it when you have little time and the options are all plausible.

  1. Ask: is this a DP check or an issuer or RTA action? DP checks the account and the documents. Issuer or RTA confirms the request.
  2. Look for the words 'Surrendered for Dematerialisation'. If the option involves marking certificates, the DP is the actor.
  3. Reject any option where the investor sends certificates straight to the issuer.
  4. Reject any option where names or their order differ and the request is still accepted.
  5. If unsure, pick the option that keeps the full chain: investor, DP, RTA, depository.

Common mistakes in Demat Request Form (DRF) and Documentation

  • Thinking the investor sends certificates directly to the issuer or RTA.

    Students recall that the issuer finally processes the request.

    Fix: The investor always submits the DRF and certificates to the DP. Only the DP forwards them.

  • Treating the DP as a passive post box.

    The issuer's confirmation looks like the main check.

    Fix: The DP must verify the account, the form and certificates, and the name match before accepting.

  • Ignoring the order of names for joint holders.

    Students think matching names is enough.

    Fix: Names and their order on the certificates must match the demat account. A different order means a transfer or name change is needed first, not demat.

  • Using one DRF for several different securities.

    It seems efficient to batch everything.

    Fix: Use a separate DRF for each ISIN. One form can cover several certificates of the same security.

  • Forgetting to mark certificates as surrendered.

    Students focus on the electronic entry only.

    Fix: The DP must mark each certificate 'Surrendered for Dematerialisation' so it cannot be traded or transferred.

Worked examples

Example 1

Mr. Rao holds 100 shares of Company X in physical form and 50 shares of Company Y. He wants to demat both. How many DRFs does he need, and with whom does he submit them?

Show the solution
  1. The two companies have different ISINs.
  2. A DRF is used for each ISIN, so he needs one DRF for Company X and one for Company Y.
  3. He submits both forms with the certificates to his DP, not to the companies.
  4. The DP verifies, marks the certificates 'Surrendered for Dematerialisation' and forwards them to the issuer or RTA.

Answer: Two DRFs, submitted to his DP.

Example 2

Which of the following is a check the DP must make before accepting securities for demat? (a) The share price is above face value (b) The names and order of names on the certificates match the demat account (c) The company has paid a dividend this year (d) The investor holds at least 100 shares

Show the solution
  1. Option (a) concerns market price and is not a demat requirement.
  2. Option (c) concerns dividends, which are irrelevant to acceptance.
  3. Option (d) invents a minimum holding; demat has no such condition.
  4. Option (b) is a standard DP check: the names and their order must match the account.

Answer: (b) The names and order of names on the certificates match the demat account.

Exam tips

  • Questions often test who performs which step. Memorise the chain: investor, DP, issuer or RTA, depository credit.
  • Watch for name or order mismatch in joint holding scenarios. The correct answer usually rejects the request.
  • Remember the phrase 'Surrendered for Dematerialisation' and that the DP applies it.
  • Eliminate options that invent minimum quantities, fees or limits not in the NISM workbook.
  • Negative marking applies in this paper, so skip a question only if you cannot narrow it to two options.

Practice questions from Functions of Depository Participant - Dematerialisation

Demat Request Form (DRF) and Documentation: frequently asked questions

What is a Demat Request Form (DRF)?

It is the form an investor signs and submits to a DP to convert physical certificates into electronic form. It carries the account number, the issuer and ISIN details, the quantity and the certificate numbers.

Can I submit physical certificates directly to the company for demat?

No. The request must go through a DP where you hold a demat account. The DP forwards the DRF and certificates to the issuer or RTA.

What happens to the physical certificates after the DP accepts them?

The DP marks them 'Surrendered for Dematerialisation' and sends them with the request to the issuer or RTA. After verification the securities are credited to your account and the certificates are cancelled.

Do I need a separate DRF for each security?

Yes. Each ISIN needs its own DRF. Several certificates of the same security can be listed on one form.