What is the significance of transposition in demat?
Sometimes, a titleholder of securities holds them jointly with one/two/three persons in different order of names. Since dematerialisation can take place through a demat account only in the identical order of names, such investor would have to open multiple demat accounts as per the order of names. To avoid such a situation, the investor could consider using the transposition-cum-demat facility offered by CDSL.
Transposition-cum-demat facility enables an investor to transpose names of the joint holders in desired order along with the process of dematerialisation of certificates. Transposition-cum-dematerialisation facilitates dematerialisation of certificates held in different order of names through one demat account, provided the securities to be transposed are held in the same joint names, but, in a different order. Illustratively if A owns a security, which he holds in the joint names of ABC, ACB, etc. he can first transpose them in the name of, say, ABC in which order demat account might have been opened. No new name can be added through transposition process. Similarly, existing names cannot be deleted.
What procedure should be followed by the BO for transposition-cum-dematerialisation request?
The BO should submit his application in Transposition Request Form (TRPF) alongwith the Demat Request Form (DRF) and the share/securities certificates to his DP.
Whether a separate TRPF should be filled for each combination of names?
No. Different combination of names can be listed in separate boxes in section (C) of the TRPF. If the space provided in the TRPF is not found sufficient, a separate form or an annexure may be used.
