How to Convert Physical Shares to a Demat Account: A Step-by-Step Guide

Learn how to convert your physical share certificates into a Demat account with this step-by-step guide. Ensure a smooth dematerialization process and avoid common pitfalls.

Introduction

Still do you have physical share certificates? They must be converted into a Demat account if they are to be followed SEBI guidelines, carefully kept, and readily traded. This tutorial will follow you through the entire dematerializing share process—covering common issues involving name matches, deceased holders, or missing documentation—and how to promptly resolve them.

Step-by-Step Guide to Convert Physical Shares into Demat

Step 1: Review Your Physical Share Certificates

• Make sure you have original share certificates bearing the unique folio number, certificate number, and distinctive number.
• Should you have lost them, you could have to seek for a duplicate share certificate from the registrar of the corporation. If you have misplaced them, you may need to apply for a duplicate share certificate from the company’s registrar.

Step 2: Confirm the joint holders' names.

• See whether your name on the share certificate matches your PAN and Aadhaar details.
• Make sure all names and signatures match if you jointly own shares

Step 3: Verify if the company appears on the Stock Exchange.

• See whether the company still appears on NSE or BSE. Should the firm be delisted or closed, you might have to contact the RTA of the company for more actions.

Step 4: Verify Share Details with the Registrar (RTA)

• Check your distinctive number and certificate number by emailing the Registrar and Transfer Agent (RTA).
• The RTA will offer required forms and guidelines for the dematerialization process.

Step 5: Get and Complete the Appropriate Forms

• The RTA will transmit any extra forms required including the Dematerialization Request Form (DRF).
• Review the directions closely and properly complete the form.

Step 6: Opening a Demat Account (If Not Already Opened)

• Open a Demat account with a Depository Participant (DP), such as Zerodha, Upstox, ICICI Direct, or Angel Broking if you do not already have one.
• Make sure the names on the Demat account line up with those on the share certificates

Step 7: Special Cases – Deceased Shareholder

• If the original shareholder has passed away, you need to submit:
  • Death Certificate (in English) from the municipal office.

Step 8: Signature Mismatch – Bank Verification

• If your signature on the share certificate doesn’t match the DP records, the bank will need to verify and authenticate your signature.
• You may need to submit a Signature Verification Letter from your bank.

Step 9: Name Mismatch – Affidavit Requirement

• Minor spelling differences can be corrected with an affidavit on stamp paper.
• Major name mismatches (e.g., due to marriage) require:
  • Gazette Notification / Marriage Certificate / PAN Name Change
  • A self-attested affidavit declaring the name change.

Step 10: Submit All Documents to Your Depository Participant (DP)

• Send your original share certificates and the completed paperwork to your Demat broker (DP) as soon as possible..
• The request will be processed and forwarded to the Registrar & Transfer Agent (RTA) by your designated processor.

Step 11: Dematerialization Processing Time

• The physical shares will be converted into Demat within 15 days.
• You can track the status via your DP.

Step 12: Handling Registrar Queries

• The documents will be returned by the registrar with remarks if any document is missing or wrong.
• If that's the case, fix the mistakes and send the request again.

Benefits of Converting Physical Shares to Demat

✅ Safe & Secure: No risk of physical damage or loss.

✅ Easy Trading: You can sell shares online instantly.

✅ Faster Settlements: No need for manual paperwork.

✅ Compliance with SEBI: Trading in physical shares is no longer allowed.

Conclusion

Assuming all steps are taken correctly, transferring physical shares to a Demat account is a breeze. To make sure your dematerialization goes off without a hitch, follow this guide.

If you have any questions, drop a comment below!