What is Dematerialization and How it Works

abhishreshthaa

New member
Dematerialization – An Introduction

Dematerialization is the process of recording physical holdings (Warehouse receipts) in electronic form


Facilitates easy transfer of holdings through the electronic mode


Parties involved in the Demat process


Client, Warehouse, Depository Participant, R&T Agent, Depository



Procedure


Opening of account with a Depository Participant of NSDL


Deposit Confirmation to the Registrar & Transfer Agent and Depository


Validation and Confirmation of request by the R&T Agent


Electronic credit of the balance in the Demat account of the account holder


Dematerialization – An introduction


Dematerialization – Entities


Dematerialization - ISIN



Commodities identification using ISIN (International Securities Identification Number)


ISIN is a Unique number allotted by the depository (NSDL)


ISIN to be unique for handling


Commodity type


Grade


Warehouse operator


Location/branch


Validity period for delivery in the exchange


Commodity ISINs are communicated to Members by NCDEX


Dematerialization - Good delivery norms


Standard grade of commodity notified by the Exchange


ISIN Code is allotted based on this Standard grade


Rate of premium and discount to the standard grade is also identified


Validity date specified for each ISIN


Commodities not conforming to Standards specified are considered Bad delivery


Dematerialization – Process flow


Dematerialization – Demat credit


Assaying of goods done by approved assayer


List of accredited Assayers


SGS India Pvt. Ltd


Dr.Amin Superintendents & Surveyors Pvt. Ltd

J.B.Boda Surveyors Pvt. Ltd.


Geo-Chem Laboratories (P) Ltd.


Acceptable grade and quality specifications for the commodity are assessed


Electronic transmission of information of deposit to NSDL


Confirmation by NSDL


Validation and Credit into demat account of seller client under the specified ISIN


Statement of Credit available thru NSDL under specified ISIN


Dematerialization - Warehouse

Deposit of commodity at the accredited warehouse by Client

Accredited Warehouses
 

jiten005

Banned
Dematerialization – An Introduction

Dematerialization is the process of recording physical holdings (Warehouse receipts) in electronic form


Facilitates easy transfer of holdings through the electronic mode


Parties involved in the Demat process


Client, Warehouse, Depository Participant, R&T Agent, Depository



Procedure


Opening of account with a Depository Participant of NSDL


Deposit Confirmation to the Registrar & Transfer Agent and Depository


Validation and Confirmation of request by the R&T Agent


Electronic credit of the balance in the Demat account of the account holder


Dematerialization – An introduction


Dematerialization – Entities


Dematerialization - ISIN



Commodities identification using ISIN (International Securities Identification Number)


ISIN is a Unique number allotted by the depository (NSDL)


ISIN to be unique for handling


Commodity type


Grade


Warehouse operator


Location/branch


Validity period for delivery in the exchange


Commodity ISINs are communicated to Members by NCDEX


Dematerialization - Good delivery norms


Standard grade of commodity notified by the Exchange


ISIN Code is allotted based on this Standard grade


Rate of premium and discount to the standard grade is also identified


Validity date specified for each ISIN


Commodities not conforming to Standards specified are considered Bad delivery


Dematerialization – Process flow


Dematerialization – Demat credit


Assaying of goods done by approved assayer


List of accredited Assayers


SGS India Pvt. Ltd


Dr.Amin Superintendents & Surveyors Pvt. Ltd

J.B.Boda Surveyors Pvt. Ltd.


Geo-Chem Laboratories (P) Ltd.


Acceptable grade and quality specifications for the commodity are assessed


Electronic transmission of information of deposit to NSDL


Confirmation by NSDL


Validation and Credit into demat account of seller client under the specified ISIN


Statement of Credit available thru NSDL under specified ISIN


Dematerialization - Warehouse

Deposit of commodity at the accredited warehouse by Client

Accredited Warehouses

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