Holding physical share certificates was common many years ago. Today, however, almost all share trading and ownership in India happens in Demat (Dematerialised) form. If you still have physical share certificates, converting them into Demat form is important to protect your investment and make future transactions smooth.
This detailed guide by SharesClaim explains how to convert physical shares into Demat form, step by step, in simple language.
What Are Physical Shares?
Physical shares are paper certificates issued by companies to show ownership. These certificates mention details like the shareholder’s name, number of shares, certificate number, and company seal.
While these documents were once valid, they now come with risks such as:
- Loss or damage
- Forgery or duplication
- Delay in transfer or sale
Because of these issues, SEBI has made Demat form mandatory for trading shares.
What Is a Demat Account?
A Demat account holds your shares in electronic form, just like a bank account holds money. Instead of paper certificates, your shares are stored digitally with a depository.
In India, the two main depositories are:
- NSDL
- CDSL
A Demat account makes buying, selling, and transferring shares faster and safer.
Why Should You Convert Physical Shares into Demat Form?
Converting physical shares into Demat form has many benefits:
- No risk of loss, theft, or damage
- Faster transfer and easy tracking
- Mandatory for selling shares on stock exchanges
- Easy nomination and inheritance
- Safe record maintained electronically
If your shares are still in physical form, conversion is strongly recommended.
Things You Need Before Starting the Conversion
Before beginning the process, make sure you have:
- Original physical share certificates
- A valid Demat account
- PAN card
- Aadhaar card
- Bank details
- Signature matching company records
If you do not have a Demat account, you must open one first.
Step-by-Step Guide to Convert Physical Shares into Demat Form
Step 1: Open a Demat Account
If you don’t already have one, open a Demat account with a registered Depository Participant (DP). This can be a bank or brokerage firm.
Make sure your name and details exactly match those on the physical share certificates.
Step 2: Fill the Dematerialisation Request Form (DRF)
Ask your DP for a Dematerialisation Request Form (DRF). Fill in all details carefully, such as:
- Company name
- Certificate number
- Distinctive numbers
- Number of shares
Write “Surrendered for Dematerialisation” on each share certificate.
Step 3: Submit Share Certificates and DRF to DP
Submit the completed DRF along with original physical share certificates to your DP. The DP will check the documents and give you an acknowledgement receipt.
This receipt is important for tracking your request.
Step 4: DP Sends Request to Depository
After verification, your DP forwards the request electronically to the depository (NSDL or CDSL) and sends the physical certificates to the company’s Registrar and Transfer Agent (RTA).
Step 5: Verification by Company or RTA
The company or its RTA verifies:
- Share details
- Signature match
- Ownership records
If everything is correct, they approve the dematerialisation request.
Step 6: Shares Credited to Your Demat Account
Once approved, the physical shares are cancelled, and the same number of shares are credited electronically to your Demat account.
You will receive a confirmation from your DP when the process is complete.
How Long Does the Process Take?
The dematerialisation process usually takes 15 to 30 days, depending on document accuracy and company response time.
Delays may happen if:
- Signatures do not match
- Documents are incomplete
- Shares are old or damaged
Common Problems During Conversion
Some common issues shareholders face include:
- Name mismatch
- Signature mismatch
- Lost or torn certificates
- Shares belonging to closed or merged companies
- Inherited shares without transmission
In such cases, expert assistance becomes very helpful.
How SharesClaim Can Help You
SharesClaim specializes in handling complex share-related issues, including:
- Conversion of physical shares into Demat form
- Signature mismatch resolution
- Transmission of inherited shares
- Recovery of lost or forgotten shares
- Unclaimed dividends and bonus shares
With expert guidance, SharesClaim ensures the process is smooth, accurate, and stress-free.
Important Points to Remember
- Always keep copies of submitted documents
- Ensure details match company records
- Do not laminate share certificates
- Track your request using the DP acknowledgement
- Seek expert help if documents are old or incomplete
Final Thoughts
Converting physical shares into Demat form is no longer optional—it is essential. The process may look complicated at first, but when followed step by step, it becomes simple and manageable.
If you want to protect your investments, avoid future problems, and enjoy hassle-free ownership, converting your physical shares into Demat form is the right move.
For professional support and end-to-end assistance, SharesClaim is here to help you every step of the way.
