Capital market regulator(SEBI) is looking at discontinuing trading of physical shares and making demat mandatory for transfer of physical shares.
Now that practically all stock market transactions happen in demat form, many shares are in a compulsory demat list. If an investor still holds physical certificates for these shares, stock exchanges provide an additional trading window to sell them. The buyer has to then convert them to demat format before selling them. –Livemint
How to Convert physical Shares to Demat form?
If you are dealing with shares in recent times, chances are high that you understand the tendency of modern brokers that insist you deal only with dematerialized form of shares. This, undoubtedly, makes the situation pretty challenging for many investors, especially for them that hold physical shares. It is evident that holders of physical shares are mostly senior citizens that find it pretty impossible and difficult to convert the same in demat format. A recent study has brought into the limelight that about 300 crore shares of the present Sensex companies are available in physical form. There is hardly any room of doubt that dematerializing of your share would allow you to avoid the risk of losing the certificate or duplicating the same.
Learn the first step
The first and foremost thing you need to convert your physical shares to demat form is to open a recipient account with a depository participant, if you do not have any demat account. The depository participant is usually a broker or agent that interfaces with the bank. To open the beneficiary account, you need to fill up the account opening form properly and signing a deal with the depository participant. It is worth to mention in this context that at the time of opening up the demat account, you need to provide all the required details that include particulars of your bank account along with the name and branch of the bank, etc.
Process of transferring
Next, it comes to dematerialize the physical shares. Fill up the DRF or Dematerialization Request Form that is available along with the depository participant and submit your share certificates along with the form. In most of the cases, applicant will get the electronic request and physical shares and DRF within two weeks after verification done by the company. They only issue with the electronic request, only if the DRF and physical certificates are found in order. After the conversion is completed, your depository participant or DP will provide you periodic statements of your holdings. Apart from this, DP will also update the account of the clients on a regular basis especially after any transaction.
Get rid of the risk of having physical certificates
It is evident that dealing with physical shares is pretty risky and involves several problems that include bad delivery, delay in processing, fraud transaction and many more. By converting your physical shares to dematerialize form, you can easily avoid such complex and time consuming processes that have a great effect on your investment. Demat is nothing but destroying the old and shabby process to get switch to the latest electronic mode.
Enjoy other advantages
Even though, it is not compulsory to have shares in physical format, most of the shares of present times are traded in demat form. Moreover, some companies even do not deal with physical shares anymore. Apart from these, you will even hardly find any agents that will do the job for you. On the other hand, you can easily purchase or sale your demat share with brokers or agents. Furthermore, having physical shares can even affect your capital gains tax as you do not pay any security transaction tax with your physical shares.
Process of converting physical shares into demat
- Open an account with a depository participant (DP)
- Surrender physical certificates to DP
- DP intimates to the depository regarding the request
- DP submits the certificates to the registrar of the issuer company
- Registrar confirms the dematerialisation request from depository
- After dematerialising the certificates, registrar updates accounts
- Depository updates its accounts and informs the DP
- DP updates the demat account of the investor
Source: Sebi
Related Readings and Observations
Difference Between Trading Account and Demat Account Demat accounts are electronic account forms where you can store all the fund, equities and shares you have purchased from the stock market. Therefore, you need not keep all the share […]
Stats about NSE Equity Derivatives Participation Here are the few interesting stats from SEBI in its recent Discussion Paper on Growth and Development of Equity Derivative Market in India which gives a fair understanding about […]
SEBI Revises Minimum Contract Size in Equity Derivatives to 5 Lakhs SEBI today in its circular announced the minimum contract size for equity derivatives from Rs.200,000 to Rs 5,00,000 effective from 30th October 2015 (Post October 2015 Expiry). It is […]
Derivatives – Median Quarter-Sigma Order Size – Explained Quarter Sigma Order Size is the order size (price x Volume) required for the stock price movement of 1/4th of Standard deviation of the stock price and it should be greater than Rs10 lakh. […]
Understanding Financial Regulatory Bodies in India In India, the financial system is regulated with the help of independent regulators, associated with the field of insurance, banking, commodity market, and capital market and also the […]
The Latest Rules And Regulations Of SEBI Crowdfunding SEBI( Securities and Exchange Board of India) has very recently changed its rules and regulations of crowdfunding. If you do not have any idea on the term crowdfunding, it is worth to […]
thanks vidhyaa……
How to convert physical shares to online ?
Physical shares are nri shares now customer doesn’t have nri status .
Physical certificate in my wife’s name. She has joint demat account with my name. Any complication in conversion and bring it into demat form?
Nothing to worry.
we have a large number of physical share want to convert demart..so please assist us what is the process..
regards,
shruti
Hi,
Its really Simple process, once you Open your Demat account with any of the Demat facility provider like Sharekhan, Angel broking, ICICI, HDFC, AXIS and many more.
Nowadays Each bank provides DP facility.
You can just open an account with them, and ask them to convert your Physical shares to Demat form.
I’d prefer you open an account with which you have Bank account. Which will make easy to transfer money to / from in your DP account.
Hope this helps.
Thanks
Hi,
If we have a demat account with a nationlized bank, then can they directly convert our physical shares and debentures in demat form ？Or we have to go through a service provider like Angel broking, Share Khan etc.
Please help with this confusion,
I have physical shares and what should i do?
pls see deatils name of company
Geekay Exim India Ltd
Monalisa Multiplast Ltd
Atul Glass Industries Ltd
Zenith Steel Pipes Ltd
I have physical shares purchased my eldest brother on my name. At present he is not alive. How I manage the shares.
The Physical shares are on Your name. So you need to create a demat account with any of the company/financial institution.
Then do the process mentioned above.
I have opened d mat ac have deposited physical shares with dp they have sent to co but Demat ls not done saying signature differs in spite of my sending bank verification I m worried please suggest solution m
I have the physical shares of some listed living company and some of non living company how can i transfer these shares to my with my demat account.
But for your informations all shares of betweeen 1991 to 1992
Please help
You need to open a Demat account on Your Name, or on the name of the Share Certificate owner, with one of the Demat service provider like ShareKhan.com, Angel Brokings, Icici Securities, HDFC Direct which ever you feel comfortable dealing with.
Then as them to help convert the Physical shares to Electronics / DP form.
They’ll be happy to assist you.
Thanks,
Manthan Rana
I have some physical shares in my wife’s maiden name.
Her current records ( PAN / Bank A/c etc) have her married name. She has a Demat a/c in her married name.
Can I transfer the physical shares into demat using the same method.
PS -- I have an affidavit created at the time of passport issue mentioning her maiden name…
I have Physical Share of Vijaya Bank in my wife name , I have Demat account on my name ,can I Transfer this physical share into my Account
My faher purchased reliance industries share in 1990 in physical form , I joint holder of this deal , now I am citizen of Canada, can I transfer these share to my father name
Hi,
My father had many shares in his name. He expired few years ago. Can these shares be transferred to me. Also, I hold some shares in physical form. I have recently opened a Demat account with Karvy. How much duration will it take for the physical shares to be converted into electronic form.
Appreciate your reply.
Thanks
Please reply…I have same situation…father had many physical shares..he passed away few years back….can I converted to dmat form in my account
Hi,
I Have physical share RIL Company joint account holder of my parents name both father and Mother name, open demart account at bank of baroda, my mother pass away, i want to convert physical share to electronic name but this is another problem is my parent surname mention at physical share and other valid address document is different,
please help me out to this issue and make covert physical share to electronic share
thanks.
Riyaz shaikh
I purchased 200 shares of sail in 1994 .where the name of share holders are Dewsharan Sahu,Hira Lal Sahu & Girdhar Lal Sahu.But by pan card name is Heera Lal Sahu,Girdhar Sahu what can I do to open a demat ac.
Please advice me.
Reply not received please send early as possible.
Thanks.
I won some shares in phicial format. I want to demat it. But problem is on share certificate my name is “sheetalkumar Patil” and on election card, aadhar card, driving licene it is as “shitalkumar” With which name I have to open demat account and how to convert the shares in demat form? please guide me.
Hi,
I’ve some Physical shares in the joint Name of my father and mother. now they are no more and laying with us. I want to convert them in Electronic. more over my father had opened demat account with Angel broking, and converted some share in electronics. he nominated my name for nomination. he passed away in 2010. I need to transfer these shares to my name.
pls advise me
regards
Anupam Thaker
Hi,
I Have 50000 No Of Equity Share in Physical , currently i interested to convert demat account, how much money i Will Spent ?, Pls Advise Me
we are having some physical share certificates lying with us which were purchased by my parents. Now both of them are not alive. i ‘m having a demat account in my name. Can you guide us the procedure by which the same can be transferred in my name.
Thanks in advance
I have physical shares in my father’s name, unfortunately he died in 1992, he had no demat account of his own. Now I want to transfer those shares in my demat account. Please advice the process.
I HAVE THE FOLIO NUMBER OF PHYSICAL SHARES HELD,IF I DONT HAVE SHARE CERTIFICATE HOW CAN I DEMAT THE SAME
Only Folio Numbers will not help and will not be accepted. You need to have the Original Physical Share Certificates. Without which no bank will accept only the folio nos for Demat. First you need to the approach the registrar of the Company the shares you hold to obtain Duplicate shares.This is a bit tedious process and may take time, once you receive the Physical Share than you can proceed with the Demat procedure. The company registrar will advise you on the process of obtaining the duplicate shares.
I have some physical shares of different companies purchased long back but not transferred in my name. How to transfer to my present Dmat A/C ?
Sir
we have share in physical form want to dematerialize the same we tried it but received dematerialize objection code 99 folio lock present
What does that mean *( means we can never redeem that amount please guide us
Thankung you
I have physical shares and what should i do?
pls see deatils name of company
TITAN ALLOYS LTD.
DAMANIA CAPITAL MARKETS LTD.
DAMANIA AIRWAYS LTD.
NIRMA LTD.
GUJARAT PERSTORP ELECTRONICS LTD.
MODERN SYSTEX (INDIA) LTD.
RELIANCE PETROLEUM LTD.
SUNRISE POLYCON LTD.
I have some very old shares of Bayer India Ltd now known as Bayer cropscience.. these were purchased around the year 1978.. How to demat these shares. As the face value has changed to 10 rupee now and then in 1978 it was 100 rupees. Please explain the process.
Please reply me for above
Please Reply send through email
I have some physical share my father brought in 1992 but he is no more how can I transfer into my demate account.
I have some physical share and dividend with joint account one holder passed away and I have dp account but my dp account is single so plz kindly inform me how can i convert my share in electoral mode
Hello,
My father bought some 200 shares of Reliance Industries from his friend. the shares are in physical form and still in his friend’s name. That man is now in US and my father in India. We want to sell those shares or at least convert them to demat form. We have talked with him and he has said to send any document that needs to be signed so that we could convert them. I have the de materialization form with me but how do I transfer those shares to my father’s name ? Is there any share transfer form as well ? What would be a better approach
1) To send him share transfer form and get it to my dad’s name and then convert it to demat form.
2) Ask him to open a demat account in India and then convert it to demat so that we could sell them.
Please help
hi sir i have physicl shares in andhra bank but i loss the physical document but i have portfolio nos how can i get my shares and what is the process of converting physical to electronic form
sir
i have a huge problem and need your help…i have physical shares on hte name of my grandfather who expired. I have a demat account. All heirs have distributed the shares amongst themselves but how can we convert to demat..what documents are needed? can anyone guide me?
I am having joint ownership of a share certificate in physical form, where my mother is the first owner and I am the joint owner. My mother passed away about 6 months back. I have a demat account with ICICI Direct where I am the first owner and my wife is the joint owner. Can I dematerialize the physical share certificate in this demant account ?
Yes you can demat the physical share certificate. But you need to have a affidavit with your mothers Death Certificates and all your relevant documents like Birth Certificates where your mother’s name appears and various other documents for completing the process.
no, you can not d mat in joint account , but open your sole/single accout and get shares d mat in this new account
after submitting D C of your mother
(1)I have some share of unlisted companey . can i deposit it demate account. (2)we purchase share of sun sourse india by permoters in permoter quota . we are three member. certificater issue on the name of all three member like first holder, second holder & thired holder. now first and third holder is leave the town with his share, without singe on deed. i have my own share, i am second holder in certificate, can i deposiit my share in my demate account.
hi
i have 100 share certificate of everest cement ltd
what is the new name of company ?
and how to change the process of new name?
I am having very old shares of HDFC bank purchased in 1995. I tried to convert them into electronic form through Panjab National Bank/NSDL where I am having Demat account. The bank returned the shares to me saying that share value (face value of Rs. 10) has got changed. After the search on Internet, it was found that HDFC Banks stock was split in 2011. Now, I am not clear how to convert my shares to electronic form? Can you guide me please?
We are the promoters of the company having some shares in physical form, can we convert those shares in bank which we have our transaction account
I have a Demat account with Sharekhan in my name and aunt name linked to my account. I have some physical shares in my name and husband’s name. Is it possible to link the account bearing my aunt name and my name to the Demat account without my husband’s name in the SB account?
My Father has some Bank of Punjab shares. This bank was merged to Centurion Bank and now know as Centurion Bank of Punjab.
I heard Centurion Bank of Punjab is again merged into HDFC Bank.
My father only has the old share of Bank of Punjab. How should we Dematerialize it?
Hi Vidhyaa Sree,
I have bank A/C with Bank of Baroda. I live in California, USA.
Is there any ONLINE link I can use to open Demat A/C with Bank of Baroda, Vile Parle, Mubai?
Thanks,
Harish
My mother is having shares of Axis Bank in physical form, the only problem is that her last name in share certificate is Devi, but in Aadhar,Pan card is Singh. Please help me what to do? Waiting for the response. Thanks…
I have physical shares of companies which are not listed presently.
Is these can be transferred to Demat mode now or when those companies listed in future.
What is the charges for De-Materialization
Can I demate or sell my physical share certificate of H D F C after 31.03.2019. I Have Senate account holder
Ritu Arora
Thanks for sharing the post. The way you narrated the post is good and understanding. After reading this post I learned a lot of new things about Demat certificate for the physical shares. Please let me know for the upcoming posts.