MUMBAI, Nov 4: SEBI'S recent diktat on compulsory dematerialisation by institutional investors seems to have been taken seriously with the depository witnessing a deluge of demat requests in the last fortnight.Although no figures on the number of shares that have come in for dematerialisation are available, a cross-section of depository participants (DPs) say the number could range from 15 crore shares.

The National Securities Depository Ltd (NSDL) has on its part decided to launch a major training programme for market intermediaries to provide "complete support" to them in meeting the January 15 deadline of trading only in demat shares.

The rush for dematerialisation has taken several market intermediaries by surprise, considering the number of holidays in the last fortnight.Market sources said that following discussions with SEBI and the NSDL top brass the market players were convinced that the deadline would be strictly enforced.

As of October 15, about 53 crore shares have been dematerialised and this figure jumped to about 60 crore shares within a fortnight (October 31). However, depository participants say the exact quantum of shares dematerialised will only be known once the exercise is through.

It usually takes about 10-15 days for a share to be dematerialised from the day it is lodged by a shareholder with his depository participant.

"Given the immediate cries of concern on meeting the deadline by market players we did not expect investors to come in for dematerialising their stock so soon. The requests are just pouring in by the day which is a good sign," said a source at a foreign depository participant.When contacted, a senior NSDL official confirmed that the depository has been requested to hold training programmes in the wake of compulsory dematerialisation.

"We will extend all support to market players in shifting them to a dematerialised regime," said the source.

According to sources, the depository will hold separate training sessions for custodian depository participants and for those catering to the retail clientele. Special training sessions will be held for brokers of the National and Bombay stock exchanges.

The first such session will kick off from November 6. "A number of depository participants have expanded their depository services department in the wake of the recent diktat. They now feel a need for training the additional staff to take up the increasing demand," said a source at a depository participant.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.