Is it mandatory to dematerialise physical shares to transfer or sell them?

Yes. SEBI rules mandate that all share transfers and market deals must be carried out through demat accounts. After December 2018, paper shares are not subject to trading.

Will I be able to dematerialise physical share certificates when the name on the share certificate does not match my demat account?

No. Before demat conversion, you need to update your records and certificate with the RTA to become eligible for the conversion of the physical certificate to demat form.

Is it possible to directly convert inherited shares to demat?

No. Share certificates that are inherited must first undergo a transmission process (submitting a death certificate, legal heir documents, and KYC of the beneficiary). After updating the ownership, the shares can be dematerialised.

How long does the process take to convert physical shares to demat?

The entire dematerialisation process usually takes 2 to 4 weeks from submitting your Dematerialisation Request Form (DRF) and the physical share certificates to the Depository Participant (DP) until the electronic shares are credited to your demat account.

What documents are required to convert physical shares to demat?

You must have your original physical share certificates, completed DRF, a demat account with DP, valid identity proof (PAN card), address proof ( Aadhaar ), and, in the case of joint holdings, all documents for other holders. Inherited shares may require special documents, such as transmission forms.

Dematerialisation of Shares

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Dematerialisation of Shares

Stock Market

Dematerialisation of Shares

Explore why demat conversion of physical certificates is important, the documents required, the step-by-step process of how to transfer physical shares to demat account, and the advantages of modernising your shareholding.