Convert Physical Share Certificates into Demat form

You can De-materialize shares of the companies which are active and are trading in the secondary market. You can search the scrip name on NSE or BSE website to check the same.

Please also note that physical shares can't be transferred after 5th December 2018 vide SEBI Notification No. SEBI/LAD-NRO/GN/2018/24.

Process of converting physical share certificates into DEMAT form:

• First step is to have demat account open with DP of your choice at any share broker.
• Once your demat account is opened, you can convert your share in demat form, by filling a Dematerialisation Request Form (DRF).
• You need 3 copies of DRF for every stock/company. For more than 4 Share certificates then you will have to submit an extra DRF.
• You need to mention the client ID and sign Dematerialization Request form in the ‘Signature with DP’ and ‘Signature with RTA/Issuer’ fields. If you have joint account then both the holders need to sign.
• Following the document needed :

o The original share certificates should be submitted along with the DRFs. (You can keep a photocopy with you)

o A self-attested copy of your PAN.

• You need to send the form along with the above-mentioned documents to your broker. The broker will submit a signed DRF form along with the certificates of the shares which you want to dematerialized, to the depository participant.
• The depository participant would submit the request, through an electronic system, to the Registrar and Transfer agent.
• The electronic system generates a Dematerialisation Request Number (DRN). This DRN number is to be mentioned on the Dematerialisation Request Form (DRF) and is sent along with physical documents (identity and address proof/share certificates), to the Registrar and Transfer agent, along with a standard covering letter.
• The share certificates received by the Registrar and Transfer agent will be mutilated and the words “Surrendered for Dematerialisation”, will be written on it.
• The physical documents, along with the details in the covering letter and the Dematerialisation Request Form will be verified by the Registrar and Transfer agent.
• Your name would be replaced with depository’s name in the Register of the member for the company where you own shares.
• Once the Register of Members (ROM), of the Company where you have shared, has been amended, a confirmation is sent to the depository.
• Your Demat account with the depository participant (DP), is credited with the dematerialized shares.

Timeline for transfer: Listed companies are required to transfer shares or send the objection memo within 15 days from the date of lodgement for transfer deeds, original certificates, and all other required documents. In the case of debentures/bonds, the company is required to affect the transfer within two months from the date of lodgement for transfer deeds, original certificates, and all other required documents.

Compensation in case of delay: You can claim interest from the company if the share transfer would get delayed beyond 30days. For this, you can reach out to stock exchange by filing the arbitration where company’s shares are listed.