Transposition is the process of changing
the order of names in which securities are held. Physical certificates are
sometimes owned jointly by a shareholder, there is a possibility that names are
in a different sequence. Since jointly held physical shares can be
dematerialised and held in the same demat account only when the order of names
is identical, the investor would have to open as many multiple demat accounts
as the different name orders
To avoid this, the investor could use CDSL/
NSDL''''s tool transposition-cum-demat. While executing the dematerialization of
certificates, this allows a customer to transpose the names of joint holders in
an appropriate order.
Let’s understand this with an example, if A
and B have a demat account and some certificates are held in the names of B and
A and others in the names of A and B, the shares can be dematerialized in A and
B''''s demat account using this feature.
Application and format: The application, along with the Demat Request Form (DRF) and the
share/security certificates, shall be sent to the Depository Participant (DP)
on the Transposition Request Form (TRF). The form format can be viewed on the
out the form with information such as the client''''s name, DP ID, the names of
the demat account holders in the correct sequence, and the names and signatures
that appear on the physical certificates.
Signatures and verification: All TRF holders'''' signatures should match those in the DP''''s records.
The DP sends the share certificates, together with the TRF/DRF, to the
registrar and transfer agent, who checks the number of certificates and the
information on the share certificates to the TRF. The demat shares are then
credited to your DP account.
A self-attested copy of PAN is also needed.
Important factors to consider
· During the transposition, no
new names can be added. Likewise, existing names cannot be removed.
· For processing
transposition-cum-demat requests, CDSL does not charge any fee to depository
· For each International Securities
Identification Number, a separate TRF must be filled out.