Dematerialisation — Convert Physical Shares to Demat
Physical share certificates cannot be sold or transferred any more. Dematerialisation is what turns a piece of paper back into a liquid, tradable asset sitting in your demat account.
Why it is no longer optional
Since April 2019, listed company shares can only be transferred in dematerialised form. Physical certificates remain valid proof of ownership and you continue to be entitled to dividends and corporate benefits, but you cannot sell, gift or transfer them while they stay on paper. Every meaningful exit route runs through demat.
SEBI has also extended this to service requests: transmission, transposition, name correction and replacement of lost certificates all now result in the securities being credited in demat form rather than reissued on paper.
What has to be true before shares can be dematerialised
- The name and its order on the certificate must match the demat account exactly — including middle names and spellings.
- The folio must be KYC-compliant: valid PAN, address, mobile, email, bank mandate and nomination (or a recorded opt-out) on record with the Registrar.
- The certificate must be genuine, unmutilated and not already flagged as lost or under objection.
- Where a holder has died, transmission must be completed first.
Roughly two-thirds of the demat requests we see rejected fail on the first two points alone. We resolve those before anything is lodged.
The steps we take
- Verify the certificate against the Registrar's records and confirm the current company and ISIN after any mergers or name changes.
- Update KYC on the folio — Form ISR-1, bank details, PAN-Aadhaar linkage, nomination (SH-13) or opt-out (ISR-3), and signature verification (ISR-2) where needed.
- Correct any name, spelling or holder-order mismatch through the appropriate route.
- Open a demat account for you if you do not have one, in the correct name and holding pattern.
- Prepare and lodge the Dematerialisation Request Form with your depository participant and courier the original certificates for defacement and onward transmission to the Registrar.
- Track the request until the shares are credited, and confirm the balance with you.
A clean case normally credits in about 30 to 60 days from lodgement.
Documents usually required
Every Registrar has its own preferences, so treat this as an indicative list. We confirm the exact set for your company and case before you have anything notarised or stamped.
- Original share certificates
- PAN and Aadhaar of all holders
- Client Master List of the demat account
- Cancelled cheque with the holder's name printed
- Completed ISR-1, SH-13 or ISR-3, and ISR-2 where the signature needs banker verification
- Proof of any name change (marriage certificate, gazette notification, etc.)
A note on originals. Never post original certificates or succession documents to anyone without a written acknowledgement and tracked courier. Where the process allows, we work from certified copies and only move originals at the point they are genuinely required.
Dematerialisation of Shares — FAQs
Do I have to sell the shares once they are dematerialised?
Not at all. Dematerialisation only changes the form in which the shares are held. You can hold them indefinitely, receive dividends directly into your bank account, and sell whenever you choose.
My certificate is in my maiden name. What do I do?
The name must be corrected on the folio before the demat request, supported by your marriage certificate or a gazette notification. See name correction and transposition — it is one of the most frequent blockers we clear.
Can I dematerialise shares of a company that is not listed any more?
Often yes, provided the company still exists and its shares have an active ISIN with a depository. Where a company has been struck off or wound up, dematerialisation is not possible and we will tell you so at the search stage.
Not sure whether you have anything to claim?
Send us the names and we will check the records for you — free, and with no obligation to proceed.