Understanding paper share certificates and how investors can convert them into demat form.
Before dematerialization, companies issued share certificates in paper form known as physical shares. These certificates represented ownership of a company's stock.
Many investors in India still hold physical share certificates issued before the demat system became mandatory. These shares must now be converted into electronic form to trade or transfer them.
Investors need to open a demat account with a depository participant (DP) such as a bank or brokerage firm.
After opening the account, submit the physical certificates along with a Dematerialization Request Form (DRF). The registrar verifies the documents and converts shares into electronic form.
Many investors discover physical shares after many years, especially in inheritance cases. Professional assistance can help recover lost shares, apply for duplicate certificates, or file IEPF claims.