For many of us, those old paper share certificates bring back memories of a time when investments were physical. They looked valuable but were also fragile. Paper can get torn, lost, or damaged. Today, things have changed – the stock market is digital, and so is the way we keep our shares.
If you still have physical share certificates, it’s time to convert them into electronic form. Don’t worry – the process is simple. This step-by-step guide to convert physical shares to Demat online in India will walk you through everything in plain and easy language.
What Exactly Is a Demat Account for Convert Physical Shares to Demat Online?
A Demat account (short for dematerialized account) is where your shares are stored electronically instead of in paper form. Think of it like a bank account – only here, you store your investments instead of money. You can buy, sell, or transfer shares with just a few clicks, without handling any paperwork.
Why You Should Convert Physical Shares to Demat online
Holding shares in paper form comes with several risks. They can get lost, misplaced, or even stolen. Besides, most stock transactions in India are now carried out digitally. That’s why SEBI has made Demat accounts compulsory for trading.
Here are a few strong reasons to switch to Demat:
- Your shares are 100% safe from physical damage.
- Buying or selling takes only seconds.
- These days you can access your investment portfolios, that too, in any place anytime.
- You won’t have to deal with tedious documentation and waiting times.
- Dividends, bonuses, and other benefits get credited automatically.
Documents You Will Need to Convert Physical Shares to Demat Online
Before you start the conversion process, keep these documents handy:
- PAN card – for identification.
- Aadhaar card – for address proof.
- Passport-size photographs.
- Cancelled cheque – for linking your bank account.
- Original physical share certificates.
- Client Master List (CML) – you’ll get this after opening a Demat account.
Step-by-Step Process to Convert Physical Shares to Demat Online in India
Step 1: Open a Demat Account
Initially, opening a Demat account through a Depository Participant (DP) is required.
You may select from the widely used options such as Zerodha, Angel One, Groww, or even the bank where you have an account. After you have completed your e-KYC with PAN, Aadhaar, and photographs, your account will be activated.
Step 2: Fill the Dematerialization Request Form (DRF)
Your DP should be the one to provide you with a Dematerialization Request Form (DRF).
Fill it carefully and attach your share certificates. If you have shares from multiple companies, fill a separate form for each.
Step 3: Submit the Form and Share Certificates
Submit the filled DRF and your original share certificates to your DP. Before you hand over the certificates, write on each one “Surrendered for Dematerialization”. The DP will provide you with an acknowledgment slip for tracking your submission.
Step 4: Verification by Registrar and Transfer Agent
Your DP sends your request to the Registrar and Transfer Agent (RTA) of the company.
The RTA verifies your ownership and details. If everything matches, they approve your dematerialization request.
Step 5: Shares Credited to Your Demat Account
Once approved, the electronic version of your shares will be credited directly to your Demat account. This usually takes around 2–3 weeks. After that, you can view your holdings online anytime.
You can also explore our complete guide on how to Convert Physical Shares to Demat Online and make your investments fully digital
A Few Important Points to Remember
The name on your share certificates should exactly match the name on your Demat account.
- Never overwrite or alter details on your certificates.
- Keep copies of your DRF and acknowledgment slip.
- Follow up with your DP if it takes longer than three weeks.
- Ensure your bank account is linked for dividend payments.
Benefits of Holding Shares in Demat Form
Converting your shares to Demat form isn’t just about convenience – it’s about safety and simplicity.
- No risk of losing or damaging certificates.
- Instant transfer or sale of shares.
- Easy online tracking of your entire investment portfolio.
- Automatic credit of bonuses and dividends.
- You can even use shares as collateral for loans.
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Conclusion
The shift from paper to digital has made investing simpler and safer than ever. Converting physical shares to Demat is a one-time process, but it saves you from future hassle.
Once your shares are in Demat form, you don’t have to worry about misplacing them or running after companies for updates. Everything becomes available online – secure, fast, and easy to manage.
So, if those old certificates are still lying in a file somewhere, it’s time to bring them into the digital world. Follow this step-by-step guide to convert physical shares to Demat online in India, and take the first step towards a smarter way of investing.
FAQ – Convert Physical Shares to Demat Online
1. Can I convert my physical shares to Demat online?
Yes, you can. Just open a Demat account, fill the dematerialization form, and submit your share certificates to your DP. The rest happens online.
2. How long does it take to convert physical shares to Demat online?
Usually around 2–3 weeks, depending on the company’s verification process.
3. Do I need to visit my broker’s office for this process?
Not necessarily. Most brokers let you complete the process online or through courier submission.
4. Is there any fee for convert physical shares to Demat online?
Yes, a small processing fee is charged by your DP. It’s usually minimal — around ₹100–₹300 per request.
5. What happens to my old share certificates after conversion?
They’re canceled once verified, and your shares appear digitally in your Demat account.