Securities and Exchange Board of India, vide its circular ref no.SMDRP/Policy/Cir-28/99 dated 23-08-1999 had informed that -

"In cases where a DP has already sent information about dematerialisation electronically to a Registrar but physical shares have not been received, the registrar will accept the demat request and carry out dematerialisation on the Indemnity given by the DP and the proof of dispatch of document given by DP".

SEBI vide its letter ref no.D&CC/099/2002 dated 01-11-2002, has now clarified that the above provisions shall be applicable to all securities like scrips, bonds, debentures, debenture stock or other marketable securities eligible to be held in dematerialised form in a depository as defined in Regulation 28 of the SEBI (Depositories and Participants) Regulations, 1996.