This has been done to provide an easy exit route for small investors holding physical shares of companies that are otherwise in compulsory demat form.MSE member brokers could now make physical delivery of upto 500 shares of demat scrips in a single settlement, an exchange release said.

The Securities and Exchange Board (Sebi) had stipulated about two years ago that transactions of shares of certain high volume companies must be conducted in demat (paperless) form through the depository mechanism.However, only shares held by individual investors would be allowed physical delivery (share certificates) and those held by corporates would have to follow the demat form, the release said.

Moreover, if the share documents turn out to be defective, the rectification would be only through demat method, itadded.