I’ve got a couple of emails about this subject, so I thought I’d share it here, and see if anyone has any fresh ideas.
These readers bought the 80CCF infrastructure bond in the Demat form, which has been now allotted to them, and credited to their Demat account.
Now, these readers want to close their Demat account, and open one some place else, but they are being told that since the bonds are currently locked – in (these bonds have a lock in period of 5 years) they can’t transfer the bonds to another Demat account.
One way to deal with this situation is to rematerialize the bonds, and get the company to issue a physical certificate to them.
This can be done after the bond has been allotted, and you don’t have to wait for the lock – in period to expire to do this. After the bond has been rematerialized you can close the Demat account, and open a new one.
Does anyone have any other ideas on this, or any experience with the process of rematerialization?