How To Convert Physical Shares To Demat

In 2019, the Securities and Exchange Board of India (SEBI) implemented a plan to bring transparency to the capital markets by mandating that shares can be transferred in the stock markets electronically. This implies that you may continue to hold your physical shares; however, you cannot transfer their ownership. To transfer or trade your paper shares, you must convert them into the Dematerialised form using a Demat account. The process involves converting your physical paper shares into an electronic format. This article presents a study on how to convert physical shares into Demat.

Steps to convert shares into Demat form

Follow these steps to understand how to Demat physical shares:

Individuals must submit a Dematerialisation Request Form (DRF) to start the conversion process of paper-based securities into the Dematerialised form. Let us elaborate on the process.

Step 1: Apply for a Demat account

The first step to convert physical shares to Demat requires you to open a Demat account. You will be required to submit some primary KYC documents, such as identity and address proof, along with your photo and account opening form

Step 2: Fill out the Request Form

Contact your Depository participant and request a Dematerialisation request form (DRF). Submit this filled-out form to your Depository participant.

Step 3: Surrender your paper certificates

Submit your physical share certificates and write “surrendered for Dematerialisation” on them along with the DRF.

Step 4: Registrar and Transfer Agent

After submitting your DRF form and paper share certificates, your depository participant will notify the Registrar and Transfer (R&T) agent electronically. Additionally, a Dematerialisation registration number will be generated for your application form, which will go into your DRF and be sent to the T&R agent along with your physical share certificates.

Step 5: Verification and completion

The T&R agent will run a validity check on your documents. Transferring physical shares into Demat form typically takes around two to three weeks. Once your DRF is successfully verified along with the physical shares, you will receive an electronic request for converting your physical shares to Demat form. The Dematerialised shares are then credited to your Demat account.

Conclusion

You may continue to trade your shares once converted into Dematerialised form. The process involving how to convert physical shares to Demat is straightforward and saves you from hassles such as storing your share certificates. However, you must ensure that your physical shares are still listed on the stock exchange. If your physical shares get delisted from the stock exchange, these certificates lose all their value.

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Frequently Asked Questions (FAQs)

Yes. Dematerialisation helps you transfer your paper shares into Demat form. Individuals may be unaware of how to convert paper shares to Demat. The process of conversion of paper-based shares into Demat can be done through the Dematerialisation process.

The process to Demat old physical shares is straightforward and requires you to follow a few simple steps. Open a Demat account, fill out the Dematerialisation request form (DRF) and surrender your physical share certificates. Upon successful verification, your physical share certificates will get deposited to your Demat account.

Open a Demat account and contact your depository participant to initiate the transfer of your physical shares into your Demat account.

You may ask your depository participant for a Dematerialisation request form (DRF) to apply for Dematerialisation.

You can convert your paper shares to Demat online following the Dematerialisation process. You can open a Demat account and request a transfer by filling out a form and submitting the necessary documentation. Upon successful verification and completion, your physical shares will get credited directly to your Demat account.