The Direct Registration System, commonly referred to as "DRS", is a registration type that allows shareholders of public companies to hold their shares directly on the books of the company's transfer agent in book-entry form without issuing physical stock certificates. To facilitate the movement of direct registration transfers between financial institutions such as broker dealers and transfer agents, the Depository Trust Company ("DTC") created the DRS platform.
Transferring Direct Registration Shares
As transfer agent, Colonial Stock Transfer is able to transfer shares in and out of Direct Registration form when requested by the shareholder as seen below.
Transferring Into DRS
- Shareholders can convert physical certificates into Direct Registration form (book-entry) by mailing the original stock certificate with instructions to deposit into their direct registration account.
- Shareholders can convert shares held in street name, by instructing the broker dealer to send the shares to Colonial Stock Transfer through the Direct Registration System. (See also DWAC Withdrawal)
Note: Shareholders will receive transfer statements in either situation.
Transferring Out of DRS
- Shareholders can request to their broker/dealer to move shares from Colonial Stock Transfer to the broker electronically using the Direct Registration System. (See also DWAC Deposit)
- Shareholders can request a physical certificate from Colonial Stock Transfer at anytime, at which the shareholder may give to their broker dealer to sell.