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How to Convert Physical Shares to Demat - Step by Step Guide July 11 2022Stock Market Education

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

The Securities and Exchange Board of India (SEBI) has been on a mission of insisting the physical share certificate holders to convert their holding into digital mode. By doing so the holders of share certificates will be able to transact quicker. Digitalization or dematerialisation of shares into the electronic form will also remove any type of fraud that was possible in the case of a physical share certificate.

As per the regulation by SEBI, now you can only trade and invest in shares through a demat account. This has made the process of transacting in the stock market easier, simple, faster and more reliable. In this article, you will learn how to convert physical shareholding into electronic or dematerialised form.

Process of Converting Physical Shares to Demat Account

· The primary step for converting physical share certificate holding into electronic form is to open a demat account with Depository Participant (DP). The depository participant acts as a middleman between the shareholder and depository. You can even open a demat account with a bank. You must ensure that the name in the physical share certificate and demat account is similar.

· After opening the demat account fill the Dematerialisation Request Form (DRF) and submit it to your DP along with the physical share certificates.

· A single DRF can suffice four share certificates. In case you hold more than four physical share certificates, you must file a separate set of DRFs and submit the share certificates to the DP.

·The DP will review the details submitted and give you a DRN (Dematerialisation Request Number) as an acknowledgment for processing the request.

·The DP will send your request for converting physical share certificates into demat form to the Registrar and Share Transfer Agent (RTA) of the company whose physical shares are held by you.

·Once the process of converting physical shares into electronic form is completed, the physical share certificates are destroyed.

·The dematerialised shares will get credited into your demat account. Now you can easily transfer them to another account or sell them in the market with ease.

By following the above-mentioned process you can easily convert your physical share certificates into demat form. This process takes around 2-3 weeks to complete. The cost of converting physical shares into electronic form is very nominal. However, before opening the demat account with the DP, you may enquire about the different types of charges like brokerage, annual maintenance cost, etc. You may consider opening a demat account with Indira Securities. We are one of the fastest growing stock brokers in India and offer a wide range of broking services at affordable rates. 

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

6. Risk disclosures RISK DISCLOSURES ON DERIVATIVES:

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
https://www.bseipf.com/investors_education.html
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on dp@indiratrade.com by today EOD."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Indrendu Joshi. Email: compliance@indiratrade.com. Call : 0731-4797275

Investor grievance complaint : complaint@indiratrade.com

INVESTOR CHARTER