Every time there has been a change in the norms for Ulips — whether it is the ban on short-term plans or the reduction in charges — new customers are better placed than the old ones. It is not clear what the regulatory regime will hold in future for life companies. But if the ban on entry loads into mutual funds is any indication, Sebi appears to be keen on having lower commissions and lower first-year charges on Ulips. It is quite possible that none of the existing charge structures will change and it is also possible that the entire dispute is about regulatory turf and not about giving the customer a better deal. Even under such circumstances, a prospective buyer loses nothing by waiting.

DEMAT

To start with, you will have to open an account with a depository participant (DP) and get a unique client ID number. Various banks and brokers are DPs. You could choose one based on your comfort level. Once the account is open, you will have to fill up a Dematerialisation Request Form (DRF) provided by the DP and surrender the physical shares, which you want to be dematted to the DP.




The DP upon receipt of the shares and the DRF, will send an electronic request to the company’s registrar and share-transfer agent through the depository for confirmation of demat. Each such request will bear a unique transaction number. Simultaneously, the DP will give the DRF and the shares to the company’s registrar and share-transfer agent with a covering letter requesting the registrar and the agent of the company to confirm demat.



The company’s registrar and share transfer agent will verify the documents so received and after necessary verification will confirm demat to the depository. This confirmation will be passed on from the depository to the DP, which holds your account. After receiving this confirmation, the DP will credit the account with the shares so dematerialised. The DP will hold the shares in the dematerialised form thereafter on your behalf. And you will become beneficial owner of these dematerialised shares.