SEBI Mandated — Act Before Shares Lapse

Convert Physical Shares to Demat

SEBI regulations require all investors to hold shares in demat form for transfers, sales, or succession. If you still hold old physical share certificates, convert them before they become inaccessible. ClaimMyFunds handles the complete dematerialisation process end to end.

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Quick answer: To convert physical shares to demat: open a demat account, submit a Dematerialisation Request Form (DRF) with your original certificates to your depository participant, who forwards them to the company's RTA — credit usually takes 15–30 days. If the certificate carries a deceased holder's name, a signature mismatch, or an old name, that issue must be resolved with the RTA first.

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Why Convert Physical Shares to Demat?

Since April 2019, SEBI has made it mandatory to hold shares in demat form for all transfers. Physical certificates are at risk of loss, damage, and are ineligible for trading or succession without conversion.

No Risk of Loss or Damage

Demat shares cannot be lost, stolen, torn, or forged. They are held electronically with NSDL or CDSL — permanently secure.

Legally Transferable

Only demat shares can be legally transferred, sold on the stock exchange, or transmitted to heirs. Physical shares cannot be traded as per SEBI rules.

Smooth Succession

Demat shares are far easier to transmit to legal heirs after the death of a shareholder, without the paperwork burden of physical certificates.

Step-by-Step Process

How Physical Share to Demat Conversion Works

The dematerialisation process involves your Depository Participant (DP), the company's Registrar and Transfer Agent (RTA), and the depository (NSDL or CDSL). ClaimMyFunds coordinates all three on your behalf.

1

Open a Demat Account

If you do not already have a demat account, you must open one with a SEBI-registered Depository Participant such as Zerodha, HDFC Securities, ICICI Direct, Sharekhan, or any bank DP. We help identify the right DP based on your case.

2

Fill the SH-8 / DRF Form

The Dematerialisation Request Form (DRF or SH-8) contains details of your folio number, share certificate serial numbers, ISIN number, and quantity of shares. All entries must exactly match the physical certificate and RTA records. We review and prepare this form for you.

3

Defacing and Surrendering Certificates

Physical share certificates must be defaced (marked "Surrendered for Dematerialisation") and submitted to the DP with the filled DRF form. The DP will not accept certificates without this defacement.

4

DP Generates Dematerialisation Request Number (DRN)

The Depository Participant logs the request in the depository system (NSDL/CDSL) and generates a DRN. This number is used to track the request through the RTA verification stage.

5

RTA Verification

The RTA (such as KFin Technologies, Link Intime, or Bigshare Services) verifies the certificate details, shareholder KYC, folio records, and confirms to the depository. This is the most critical stage — any mismatch in name, signature, or address can cause delays. We coordinate with RTAs directly to resolve such issues.

6

Shares Credited to Your Demat Account

After RTA confirmation, the physical certificates are destroyed and the shares are credited electronically to your demat account — typically within 15 to 30 working days from the date of DRN generation.

Documents Required for Physical Share to Demat

Mandatory Documents

  • Original physical share certificate(s)
  • Filled and signed DRF / SH-8 form
  • PAN card (self-attested copy)
  • Aadhaar card (self-attested copy)
  • Demat account statement (showing account details)
  • Proof of address matching RTA records

Additional Documents (If Needed)

  • Indemnity bond (if certificate is damaged or mutilated)
  • Affidavit for signature mismatch or name change
  • Death certificate + succession / legal heir certificate (for deceased shareholder cases)
  • Power of Attorney (for NRI investors)
  • Newspaper publication (for lost certificates)
  • FIR copy (if original certificate is lost)

Not sure which documents apply to your case?

Our experts review your specific situation and provide a precise document checklist — free of cost.

Call +91 90818 47140

Physical Shares vs Demat Shares

Feature Physical Shares Demat Shares
Can be TradedNoYes
Risk of Loss / DamageHighNone
Transfer After DeathComplexSimpler
SEBI CompliantNon-compliant for transfersFully compliant
Dividend ReceiptMay be delayed / lostDirectly to bank
Bonus / Split BenefitsMay be missedAutomatic credit

Common Problems in Physical Share to Demat Conversion

Most conversion delays are caused by mismatch or documentation issues that require RTA intervention. ClaimMyFunds has resolved hundreds of such cases.

Name Mismatch

The shareholder's name on the certificate may differ from PAN or Aadhaar. Requires affidavit and name correction before demat conversion proceeds. Learn more

Signature Mismatch

Signatures on old certificates may differ from current bank records. Notarized signature verification documents are required. Learn more

Shares Transferred to IEPF

If shares were unclaimed for 7+ years, they may have been moved to IEPF. In such cases, an IEPF claim must be filed before demat conversion. IEPF Claim Help

Damaged or Mutilated Certificate

Torn, faded, or mutilated certificates require special handling including affidavits and indemnity bonds before the RTA accepts them for dematerialisation.

Company Delisted or Merged

If the company has been delisted, merged, or acquired, shares may still be recoverable under the new entity. ClaimMyFunds traces such historical corporate changes.

Deceased Shareholder

Physical shares in the name of a deceased person must first be transmitted to legal heirs before dematerialisation can proceed. Transmission help

Frequently Asked Questions — Physical Shares to Demat

Are you a physical share agent who can handle my demat conversion?

Yes. ClaimMyFunds acts as an investor-side physical share agent — verifying certificates, resolving name or signature mismatches with the RTA, preparing the Dematerialisation Request Form, and coordinating until the shares are credited in demat form.

Is it compulsory to convert physical shares to demat in India?

Yes. SEBI has mandated that no physical share transfer can take place after April 1, 2019. Physical shares can still be held but cannot be traded, sold, or transferred without first converting them to demat form. Failure to convert does not invalidate ownership, but makes the shares illiquid.

How long does physical share to demat conversion take?

A standard conversion takes 15 to 30 working days from the date the DP submits the dematerialisation request. Cases involving name mismatch, signature mismatch, damaged certificates, or IEPF shares take longer — typically 2 to 6 months depending on the complexity and RTA processing speed.

What if my physical share certificate is lost?

If the original physical certificate is lost, you must first obtain a duplicate share certificate through an FIR, newspaper publication, and indemnity bond process, and then proceed with dematerialisation. ClaimMyFunds manages both the duplicate certificate process and the subsequent demat conversion.

Can I convert physical shares that are in my deceased father's name?

Yes, but you must complete the transmission of shares first. The shares need to be legally transferred to the legal heir or nominee under the shareholder's estate. Once transmission is complete, dematerialisation can proceed normally. ClaimMyFunds handles both steps together.

What does ClaimMyFunds charge for physical share to demat conversion?

The case review is completely free. Our service fee is charged only after successful dematerialisation of your shares. There are no advance charges. Call +91 90818 47140 to discuss your specific case and get an accurate estimate.

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Ready to Convert Your Physical Shares to Demat?

Our experts review your case for free and handle every step — DRF preparation, RTA coordination, and depository submission — until shares are credited to your demat account.