How to Convert Physical Share Certificates into Demat Form ?

For decades, Indian investors relied on physical share certificates to prove ownership of company stocks. These paper certificates carried sentimental as well as financial value. However, with the advent of technology and regulations, physical shares are now almost phased out. To trade or even hold them securely, you need to convert them into Demat form.

If you still have old physical share certificates tucked away in your drawer, here’s a simple guide on how to convert them into Demat form and unlock their true value.

Why Convert Physical Shares into Demat Form?

1. Safety & Security – No risk of theft, loss, or damage.
2. Easy Access – Monitor and manage shares online anytime.
3. Hassle-Free Transactions – Quick buying/selling without paperwork.
4. Mandatory Requirement – SEBI has made it compulsory to trade in Demat form.

Step-by-Step Process to Convert Physical Shares into Demat Form

1. Open a Demat Account

• To begin, you need a Demat account with a SEBI-registered Depository Participant (DP) such as JM Financial Services.
• This account acts as your digital locker for holding shares.

2. Fill the Dematerialization Request Form (DRF)

• Obtain a DRF from your DP.
• Mention details of your physical share certificates such as company name, ISIN, and certificate number.

3. Submit Physical Share Certificates

• Attach the physical certificates along with the DRF.
• Write “Surrendered for Dematerialization” across each certificate.

4. Verification by Depository Participant

• Your DP will verify the details and forward the request to the company’s registrar.

5. Credit to Demat Account

• Once approved, your shares will be converted into electronic form and reflected in your Demat account with JM Financial Services.

Documents Required for Dematerialization

• PAN card copy
• Aadhaar card copy (for KYC)
• Passport-sized photographs
• Original physical share certificates

Timeline

Generally, it takes 2 to 4 weeks for physical shares to be successfully converted into Demat form, depending on verification by the registrar.

Why Choose JM Financial Services?

At JM Financial Services, you get:

• A trusted partner for Demat and trading services.
• Seamless dematerialization process with expert assistance.
• A secure and easy-to-use platform for monitoring and trading your holdings.
• End-to-end support for IPOs, mutual funds, ETFs, and stock trading.

FAQs :-

Q1. Is it mandatory to convert physical shares to Demat form?
Yes. SEBI has mandated that trading in listed shares can only be done in Demat form.

Q2. Can I sell my physical shares directly without conversion?
No. Physical shares must be converted into Demat form before they can be sold.

Q3. How long does the process take?
Usually 2–4 weeks, depending on the registrar’s verification.

Q4. What happens if there is an error in my share certificate?
If details mismatch, your request may be rejected. You will need to get the corrections done by the registrar before resubmitting.

Q5. Can JM Financial Services help me with this process?
Absolutely. JM Financial Services provides expert guidance to make your dematerialization journey simple and hassle-free.