How To Sell Physical Shares In Pakistan
Urgent action is needed to dematerialize your physical shares. The process for selling physical shares in Pakistan is undergoing critical changes, and failing to adapt could lead to complications.
This article outlines the streamlined process for converting and selling physical shares effectively, ensuring you don't miss out on opportunities or face unnecessary delays.
Understanding the Dematerialization Process
The Central Depository Company (CDC) plays a crucial role.
You must convert your physical share certificates into electronic form through a process called dematerialization before selling.
This involves opening a CDC sub-account with a brokerage firm.
Opening a CDC Sub-Account
Choose a brokerage firm that is registered with the Pakistan Stock Exchange (PSX).
Complete the account opening form and provide necessary documents, including your CNIC, proof of address, and copies of your physical share certificates.
The brokerage will guide you through the specific requirements.
Submitting Physical Share Certificates
Once your CDC sub-account is active, you must submit your physical share certificates to your chosen brokerage.
Fill out a dematerialization request form (DRF), available from your brokerage.
Ensure all details on the DRF match the information on your share certificates.
Verification and Conversion
The brokerage will then forward your certificates and DRF to the company’s registrar or transfer agent.
The registrar will verify the authenticity of the certificates.
Upon verification, the shares will be converted into electronic form and credited to your CDC sub-account.
Selling Your Shares
Once your shares are in electronic form, you can place a sell order through your brokerage firm.
Monitor market conditions and consult with your broker for informed decisions.
The proceeds from the sale will be credited to your brokerage account, from which you can withdraw funds as per their policies.
Key Considerations
Be aware of associated fees for dematerialization and trading. These typically include brokerage commissions and CDC charges.
Ensure all your personal information is accurate and up-to-date to avoid delays. Incomplete or incorrect information will result in the rejection of your dematerialization request.
Keep copies of all submitted documents for your records.
Addressing Common Challenges
Lost or Damaged Certificates: If your certificates are lost or damaged, you will need to follow a separate procedure, including filing an FIR and obtaining indemnity bonds.
Name Mismatch: Any discrepancies between the name on your CNIC and the share certificate must be rectified through legal channels before dematerialization.
Inherited Shares: If you're dealing with inherited shares, ensure all legal formalities, such as succession certificates, are completed before initiating the process.
Latest Updates
The Securities and Exchange Commission of Pakistan (SECP) is pushing for complete dematerialization.
Deadlines for converting physical shares are being enforced more stringently.
Staying informed about regulatory changes is essential.
Take immediate steps to dematerialize and sell your physical shares to avoid future complications. Consult with a registered brokerage firm to begin the process without delay. The clock is ticking.
