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.