How to convert physical share certificates into demat form?
Holding physical share certificates no longer guarantees ownership, as SEBI mandates converting them to electronic (demat) form. This process of converting physical shares is called dematerialisation. In order to validate the physical share certificate, visit https://www.bseindia.com/index.html and enter the company name or ISIN.
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The following steps will help you convert physical shares into demat form:
Step 1: Open a Demat Account: An investor must open a demat account with a Depository Participant (DP) registered with NSDL or CDSL.
Step 2: Submit Physical Certificates & DRF: Present your physical certificates and obtain a Demat Request Form (DRF) from your DP. The DRF will have your demat account details, security to dematerialised information, and other requirements.
Step 3: Verification & Cancellation: The DP verifies your certificates and forwards them to the company registrar for further verification. Once approved, the registrar cancels the physical certificates and renders them invalid for ownership claims for investors.
Step 4: Credit to Demat Account: Finally, after cancellation, the company credits your demat account with the electronic shares.
Furthermore, SEBI has made it mandatory to provide some documents to convert physical shares to demat successfully. In order to dematerialise physical share certificates, the following documents need to be submitted:
- Proof of Identity: Photo ID like PAN card, Aadhaar card, voter ID, or driving license.
- Proof of Address: Documents like passport, utility bills (electricity, gas, phone), bank statement, or lease agreement.
- Proof of Finances: The bank’s passbook or account statement for the last three months.
- Original Share Certificates: In good condition with clear information, defaced with "Surrendered for Dematerialization" written on each.
- Dematerialization Request Form (DRF): Duly filled and separate forms for different companies (if applicable).
Note:
- Proof of financial statements (bank statements) is usually not required, but some DPs may request it.
- The DP will provide an acknowledgement slip upon surrendering your physical certificates.
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