In the era of digitalisation, holding physical share certificates is becoming increasingly outdated. Converting physical shares into electronic form or dematerialisation is essential to fully leveraging the benefits of modern share market trading. This process ensures safety, convenience, and compliance with regulatory requirements. If you or your parent have shares bought before April 2019, you must get them dematerialised. All shares bought in and after April 2019 are by default in a dematerialised format.

Why Convert Physical Shares into Demat?

Holding shares in a demat account offers multiple advantages:

  • Enhanced Security: It eliminates risks associated with loss, theft, or physical damage to share certificates.
  • Simplified Transactions: Dematerialisation enables the easy transfer of shares, pledges for loans, and selling in the share market.
  • Regulatory Compliance: SEBI mandates that shares be held in demat form for trading, which is necessary for investors.

Steps to Convert Physical Shares into Demat

Follow these steps to transition from physical shares to digital holdings:

  1. Open a Demat Account: The first step is to open a demat account with a Depository Participant (DP) registered with central depositories such as NSDL or CDSL. Institutions like Aditya Birla Capital offer reliable demat account services, providing investors with secure and efficient solutions.
  2. Obtain and Fill the Dematerialisation Request Form (DRF): Request a Dematerialisation Request Form (DRF) from your DP. Fill out the form with accurate details that match the information on your physical share certificates.
  3. Submit Physical Share Certificates: Attach the original share certificates to the completed DRF. Ensure the certificates are in good condition to avoid delays during verification.
  4. Verification by the Depository Participant: The DP will verify the DRF and the attached share certificates. Once verified, they will forward your request to the registrar or transfer agent of the company that issued the shares.
  5. Processing by the Registrar: The registrar validates the share certificates and communicates the verified information to the central depository (NSDL or CDSL). Once approved, the shares are converted into electronic form.
  6. Shares Credited to Demat Account: After processing, the dematerialised shares are credited to your demat account. You will receive a confirmation statement from your DP indicating the successful completion of the process.

Key Points to Remember

  1. Accurate Documentation: Ensure all submitted documents are error-free and match the records on the share certificates.
  2. Resolve Any Discrepancies: Clear any outstanding dues or mismatched records with the company before initiating dematerialisation.
  3. Processing Time: The dematerialisation process typically takes 15-30 days.

Why Choose Aditya Birla Capital?

Aditya Birla Capital provides efficient and secure services to help investors convert their physical shares into electronic form. With a streamlined process for opening a demat account and expert support throughout the dematerialisation process, they ensure a smooth experience for investors in the share market.

Knowing how to convert physical shares into demat is essential for investors looking to modernise their holdings and participate in share market trading. Dematerialisation ensures safety, convenience, and compliance with regulatory requirements. Partner with Aditya Birla Capital to simplify this process and make your transition to digital investments seamless.