Why you still need to dematerialise physical sharesThe Securities and Exchange Board of India (SEBI) has tightened physical shareholding. Physical sale of shares is prohibited with effect from October 1, 2023. But from January 2024 onwards, even transmission (in the case of legal heirs), name deletion and duplicate requests need demat conversion. If you still have share certificates in physical form, you may not be in a position to use most of the investor services unless you convert them to demat form at the earliest.
What dematerialisation means Dematerialisation is the dematerializing of your paper share certificates into electronic form, which is stored in a demat account with a Depository Participant (DP). This makes your securities to be dealt with and traded more easily. The shares are placed in your electronic portfolio, which can be accessed through your stockbroker’s website or your DP’s portal, and are secured by central depositories like NSDL and CDSL.
Current SEBI ruleSEBI insists on all requests for services from investors name correction, transmission and delivery of duplicate certificates — being carried out only in demat form. If you submit the request in physical shares, it will be returned unless dematerialisation is performed beforehand. SEBI’s model is one of its attempts to eliminate entirely risk associated with lost or altered paper certificates.
How to dematerialise your shares. In order to dematerialise your physical shares, you need to first obtain a demat account from a registered DP. Second, fill in the Dematerialisation Request Form (DRF) and submit it along with your original share certificates. The DP will subsequently forward this to the Registrar and Transfer Agent (RTA) of the issuing company. Upon verification, the RTA will debit the electronic shares into your demat account usually within 15–20 working days.
Issues that you may face and how to resolve them. If there are discrepancies found say, mismatched signatures, name changes, or missing KYC details your application will be stalled or rejected. If you have acquired the shares through inheritance, you will first have to initiate the process of transmission, where legal ownership has to be established. Update your PAN, address, and bank account details with the DP properly.
Why you should not delay anymore By holding unconverted shares in July 2025, you risk being deprived of future dividends, bonus issues, or even selling your holding. Companies are going to great lengths to discourage holdings in paper form and will refuse service requests if holdings are not demated. Having dematerialisation done now makes you SEBI-compliant and free to trade at will in the future.
<h3>📬 Subscribe to our newsletter</h3>
<p>Get notified whenever we publish a new blog post.</p>