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NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Rematerialisation Process in a Depository (NISM Series VI)

Updated 11 October 2026 · Fact-checked

Rematerialisation (remat) converts securities held in electronic form in a demat account back into physical certificates. The investor submits a Rematerialisation Request Form (RRF) to the DP. The DP verifies it, sends a request to the depository, which informs the issuer or RTA. The issuer prints and dispatches certificates.

Understand Rematerialisation Process

Dematerialisation turns physical share certificates into electronic holdings. Rematerialisation is the reverse. The investor asks to get physical certificates in place of electronic balance.

The investor cannot go to the depository directly. The request goes through the Depository Participant (DP) with whom the investor holds the demat account. The investor fills in a Rematerialisation Request Form (RRF) and submits it to the DP.

The DP checks the request and the account. It then sends a remat request electronically to the depository. The depository passes it to the issuer or its Registrar and Transfer Agent (RTA). Until the process completes, the securities are blocked in the account, so they cannot be sold or transferred.

The issuer or RTA prints the certificates and sends them to the investor. The depository then deletes the electronic balance. If the issuer rejects the request, the blocked balance is released and stays in the account.

Only securities that are admitted to the depository and are eligible can be rematerialised. The investor bears the fees charged by the DP, so ask for the charges before you submit the RRF.

Key formulas to remember

Direction of the process
Demat: physical → electronic. Remat: electronic → physical
Exam questions often test whether you know which direction each process runs.
Request channel
Investor → DP (RRF) → Depository → Issuer/RTA → Investor (certificates)
The investor submits the RRF only to the DP, never straight to the issuer.
Blocking of balance
Securities in the remat request are blocked until confirmed or rejected
Blocked securities cannot be traded or transferred during processing.
Rejection outcome
Request rejected → blocked balance released to the account
The investor keeps the electronic holding.
Completion outcome
Request confirmed → electronic balance deleted
Balance is removed only after the issuer confirms and certificates are issued.

How to solve Rematerialisation Process questions

Use this order for any remat question. It follows the actual flow and exposes most trap options.

  1. 1Identify the direction: is the question about electronic to physical (remat) or physical to electronic (demat)?
  2. 2Note who acts: investor, DP, depository, or issuer/RTA.
  3. 3Place the event in the sequence: RRF, DP verification, request to depository, issuer/RTA action, certificate dispatch, balance deletion.
  4. 4Check the status of the securities: they are blocked once the request is accepted.
  5. 5If the question asks about rejection, think of the balance being released back to the account.
  6. 6If a timeline or fee is asked, recall only what you know from the workbook and reject options that sound invented.
  7. 7Eliminate options that make the investor deal directly with the depository or skip the DP.

Quickest way: Follow the chain of hands

When to use it: Use when a question asks who does what, or which step comes next.

  1. Write the chain: Investor, DP, Depository, Issuer/RTA.
  2. Match the option to its link in the chain.
  3. Remember that balance is blocked on request and deleted on completion.
  4. Pick the option that keeps the DP as the investor's only contact point.

Common mistakes in Rematerialisation Process

  • Confusing remat with demat direction.

    The words look similar and are learned together.

    Fix: Remat means the securities go back to paper. Think re-materialise: physical form returns.

  • Saying the investor submits the RRF to the issuer or depository.

    Students assume the issuer prints certificates, so it must receive the form.

    Fix: The RRF goes only to the DP. The DP then communicates with the depository, which informs the issuer or RTA.

  • Thinking the securities remain tradable during processing.

    Students overlook the blocking of the balance.

    Fix: Once the request is accepted, the quantity is blocked and cannot be sold or transferred.

  • Believing the electronic balance is deleted as soon as the RRF is filed.

    Mixing up the blocking stage with the final deletion.

    Fix: Blocking happens on request. Deletion happens only after the issuer confirms the request.

  • Assuming a rejected request loses the securities.

    Students think the balance has already been removed.

    Fix: On rejection the blocked balance is released and the holding stays in the demat account.

  • Quoting a specific number of days from memory without certainty.

    Students mix up demat and remat timelines.

    Fix: Revise the timeline from the NISM workbook. If an option states an unusual figure, check whether it belongs to demat or remat before choosing.

Worked examples

Example 1

An investor wants physical certificates for shares held in a demat account. To whom should the investor submit the Rematerialisation Request Form? (a) Issuer directly (b) Depository directly (c) Depository Participant (d) Stock exchange

Show the solution
  1. The process is rematerialisation, which starts at the investor's demat account.
  2. The investor's only contact in the depository system is the DP.
  3. The DP verifies the RRF and then sends the request on to the depository.
  4. The issuer or RTA acts only after the depository informs it.

Answer: (c) Depository Participant

Example 2

After an investor submits a valid RRF and the DP accepts it, what happens to the securities in the account until the issuer processes the request?

Show the solution
  1. The DP sends the remat request to the depository.
  2. The quantity in the request is blocked in the investor's account.
  3. Blocked securities cannot be sold or transferred.
  4. If the issuer confirms, the balance is deleted. If it rejects, the balance is released.

Answer: The securities are blocked. They are deleted from the account only on confirmation, or released back if the request is rejected.

Exam tips

  • Read the direction of the conversion before you look at the options.
  • Remember the chain: investor, DP, depository, issuer/RTA. Questions often ask which party comes next.
  • Watch for options saying securities stay freely tradable during processing. They are wrong.
  • Compare remat with demat. Many questions ask for the difference, and the answer is the direction of conversion.
  • If an option quotes a timeline you cannot place, confirm it against your workbook before choosing it, since a wrong answer carries negative marking.

Practice questions from Investor Services (NISM VI)

Rematerialisation Process: frequently asked questions

What is the difference between dematerialisation and rematerialisation?

Dematerialisation converts physical certificates into electronic holdings in a demat account. Rematerialisation converts electronic holdings back into physical certificates. Both are routed through the DP.

Which form is used to rematerialise shares?

The investor uses the Rematerialisation Request Form (RRF). It is submitted to the DP where the demat account is held. The DP then processes the request through the depository.

Can I sell shares while a remat request is pending?

No. The quantity covered by the request is blocked once it is accepted. It cannot be traded or transferred until the request is confirmed or rejected.

What happens if the issuer rejects a remat request?

The blocked securities are released and remain in the investor's demat account. The investor can then correct the problem or choose to keep the securities electronic.