Investors have an option to seek allotment of public issues in electronic form. As per SEBI guidelines trades in shares issued through public issue shall be settled only in demat form. Therefore, it is advisable that investors seek allotment in demat form.
NSDL depository system provides facility for allotments of securities directly in to the depository account of the investors in the dematerialised form.
- The Issuer provides an option in the application form to the beneficial owners to opt for securities either in physical or electronic form.
- The beneficial owner who opts for electronic securities will indicate the DP Id and the beneficial owner account number in the application form and send it to the Issuer/R&T agent.
- The Issuer/R&T agent will issue securities in physical form in respect of those beneficial owners who do not indicate any choice.
- The Issuer/R&T agent will provide allotment details and the date on which the necessary credit entries are to be made in the accounts of the beneficial owners (referred to as execution date) to NSDL.
- NSDL will perform the necessary bookings and the relevant credit entries are booked in the DPM on the execution date.
- The Participant will give the statement of holdings and transaction statement to the beneficial owners, giving the updated positions after the shares are credited.
- The investor must correctly indicate his client-Id, DP name, DP-Id and depository name to ensure that his entitlements are electronically credited into his account.