Many Indian investors still have old share certificates in physical form that were issued years or even decades ago. These certificates can represent valuable investments, but holding securities electronically in a Demat account is generally more convenient for selling, transferring and managing them.
The process of converting physical share certificates into electronic holdings is called dematerialisation.
An investor can generally dematerialise eligible physical securities by opening a Demat account, submitting the required Demat Request Form (DRF) and physical certificates to the Depository Participant (DP), and completing the verification process through the company or its Registrar and Transfer Agent (RTA). SEBI’s investor material describes this process as conversion of physical certificates into an equivalent number of electronic securities credited to the investor’s Demat account.
Quick Information
| Particular | Details |
| Process name | Dematerialisation |
| Purpose | Convert physical securities into electronic form |
| Where to start | Depository Participant (DP) |
| Main form | Demat Request Form (DRF) |
| Original certificates required | Generally, yes |
| Demat account required | Yes |
| RTA/company verification | Yes |
| Can physical shares still be held? | Yes |
| Can physical shares be transferred normally? | No, except applicable special cases |
| Main depositories | CDSL and NSDL |
| Separate DRF | Generally required for each ISIN |
What Is Dematerialisation of Physical Shares?
Dematerialisation means converting securities represented by physical certificates into electronic securities held in a Demat account.
For example, suppose you have:
ABC Ltd. – 100 physical shares
After successful dematerialisation, those shares can appear electronically in your Demat account as:
ABC Ltd. – 100 shares
The physical certificates are surrendered as part of the process, while the equivalent securities are credited electronically after the request is verified.
SEBI’s investor guidance describes the process as surrendering physical certificates to the DP, which forwards the request through the depository to the issuer/RTA for verification and processing.
Can Physical Share Certificates Still Be Converted Into Demat?
Yes.
SEBI has not prohibited investors from continuing to hold existing securities in physical form. However, the rules surrounding transfer of physical securities have changed significantly.
Since April 1, 2019, transfer of securities in physical form has generally not been processed, except for specified cases such as transmission and transposition. If an investor wants to transfer physical securities, dematerialisation is generally required first.
This makes dematerialisation particularly important for investors who want to actively manage old physical holdings.
How to Transfer Physical Share Certificates to a Demat Account
Step 1: Open a Demat Account
If you do not already have a Demat account, open one with a SEBI-registered Depository Participant.
Your DP may be a stockbroker, bank or another eligible intermediary.
You will receive the necessary Demat account details after the account is opened.
Step 2: Check the Name on the Share Certificate
Before submitting the certificates, check whether the name on the physical certificate matches the name on the Demat account.
This is an important requirement.
If the certificate is in your name but the Demat account is in another person’s name, the normal dematerialisation process cannot simply be used to transfer ownership.
For joint holdings, the names and their order can also matter. SEBI’s investor guidance states that the names on the physical certificate should match the names in the Demat account; where the names are in a different order, a transposition-cum-dematerialisation facility may be available.
Step 3: Check the ISIN
Identify the ISIN (International Securities Identification Number) of the security.
An ISIN is a unique identification number used for a particular security.
The physical certificate generally contains information such as:
- Company name
- Folio number
- Certificate number
- Distinctive numbers
- Number of shares
The ISIN is required for the Demat request.
Step 4: Fill Out the Demat Request Form
Obtain a Demat Request Form (DRF) from your DP.
Fill in the required details, which may include:
- Demat account details
- Company name
- ISIN
- Folio number
- Certificate number
- Distinctive numbers
- Number of securities
- Type of security
SEBI’s sample DRF specifically requires details such as folio number, certificate numbers, distinctive numbers and quantity.
A separate DRF is generally required for each ISIN.
Step 5: Submit the Physical Certificates to Your DP
Submit the completed DRF along with the original physical certificates to your DP.
The certificates are surrendered for dematerialisation.
The DP then enters the dematerialisation request into the depository system and forwards the required documents for further processing.
Step 6: Verification by the Company or RTA
The issuer company or its Registrar and Transfer Agent verifies the request.
The RTA may check:
- Shareholder name
- Folio details
- Certificate details
- Distinctive numbers
- Quantity
- Signature and other relevant records
If there is a discrepancy, additional information or documentation may be requested.
Step 7: Credit of Shares to Your Demat Account
Once the request is successfully processed, the securities are credited electronically to your Demat account.
The physical certificates are no longer used as the representation of those securities.
SEBI’s described dematerialisation process involves the RTA confirming the request, updating its records and informing the depository, after which the depository updates the investor’s Demat account through the DP.
Documents Required to Dematerialise Physical Shares
The exact checklist can vary according to the circumstances and DP, but generally you may need:
- Active Demat account
- Demat Request Form
- Original physical share certificates
- PAN/KYC details
- Demat account details
- Any additional documents requested by the DP or RTA
If the shareholder’s name, address, signature or other details do not match the company’s records, additional documentation may be required.
What If the Name on the Share Certificate Is Different?
This is one of the most important situations to check before submitting a Demat request.
For example:
Physical certificate:
Rahul Kumar
Demat account:
Amit Kumar
You generally cannot simply use the Demat process to move Rahul’s securities into Amit’s account because dematerialisation is not a substitute for transfer of ownership.
If the certificate holder has changed their name due to marriage or another legal reason, the applicable name-change procedure should be completed before or along with the relevant dematerialisation process, depending on the circumstances.
What If the Names Are the Same but Their Order Is Different?
Suppose the physical certificate is held as:
A + B
but the Demat account is opened as:
B + A
SEBI’s investor charter provides for a transposition-cum-dematerialisation facility in situations where the same names appear but their order differs.
The investor can submit the applicable Transposition Form along with the Demat Request Form and physical certificates.
This is different from removing or adding a joint holder.
What If the Physical Shares Are Jointly Held?
If the physical certificate contains joint holders, the Demat account should generally reflect the same holders and applicable order for ordinary dematerialisation.
For example:
Certificate: A + B
Demat account: A + B
The securities can then be processed for dematerialisation subject to the applicable requirements.
If you want to change the joint holding structure, such as moving from A + B to A alone, that is not simply a dematerialisation request. A separate transfer process may be required after the securities are dematerialised.
SEBI’s 2026 FAQ specifically states that a change from joint to single holding is a change in beneficial ownership and is to be effected through transfer in Demat mode rather than by merely deleting a name from the physical certificate.
What If the Shareholder Has Died?
If the name on the physical share certificate belongs to a deceased shareholder, do not simply submit the certificate for ordinary dematerialisation into another person’s individual Demat account.
The case may involve transmission of securities.
Transmission refers to transfer of title because of events such as death or succession rather than a normal sale or gift.
SEBI’s current framework provides procedures for transmission and subsequent credit of securities in Demat form.
The required documents depend on the circumstances and value of the securities.
What If You Bought Physical Shares From Someone Years Ago?
This is another important situation.
Physical transfer of securities has generally not been permitted since April 1, 2019. SEBI’s current FAQ states that if physical securities were purchased earlier but were never transferred into the buyer’s name, the securities need to be dematerialised in the registered holder’s name before a transfer can generally take place.
In certain old cases, investors may have to use the applicable special process or establish their legal claim before the securities can be transferred.
Do not simply attempt to deposit another person’s physical certificates into your Demat account.
Special Window for Certain Physical Securities in 2026
There is an important current development for investors holding certain physical securities.
In January 2026, SEBI introduced a special window for transfer-cum-dematerialisation of physical securities for specified cases. SEBI’s February 2026 bulletin also notes the extension of the special window to enable investors to obtain rightful access to such securities.
Therefore, investors with old physical certificates that were purchased or transferred historically but never properly registered should check whether their case qualifies under the current special-window framework rather than assuming that the normal Demat process alone will solve the issue.
What If the Certificate Is Lost?
If your physical share certificate is lost, you generally cannot simply submit a Demat Request Form without addressing the missing certificate.
A separate process may be required for obtaining replacement/duplicate securities and then crediting them in Demat form.
SEBI’s current framework has moved such investor-service requests toward dematerialised issuance rather than issuing duplicate physical certificates.
Contact the company’s RTA or share department for the applicable procedure.
Can Old Physical Shares Be Dematerialised?
Yes, old certificates can potentially be dematerialised if the securities are eligible and the ownership and certificate records can be properly verified.
Before submitting very old certificates, check:
- Whether the company is still listed
- Whether the company has changed its name
- Whether the company has merged
- Whether the ISIN has changed
- Whether the folio is active
- Whether the shareholder details match
- Whether any corporate actions have affected the holding
For older certificates, the RTA may need to reconcile historical records before the Demat request can be completed.
How Long Does Dematerialisation Take?
The processing time can vary depending on the DP, company/RTA and whether the documents and certificate details match.
Straightforward requests can move through the process without major issues, while old or mismatched records can take considerably longer.
Delays may occur when:
- Names do not match
- Certificate numbers are unclear
- Distinctive numbers have discrepancies
- The company has undergone a merger
- The company has changed its name
- KYC information needs updating
- Additional documents are required
Are There Charges for Dematerialising Physical Shares?
The exact charges depend on the DP and its applicable tariff.
The investor should check the DP’s current tariff before submitting the request.
SEBI’s investor material notes that DPs may collect dematerialisation-related charges such as applicable postage or courier costs according to their tariff.
What Happens to the Physical Certificate After Dematerialisation?
Once the dematerialisation request is successfully processed, the securities are credited electronically.
The physical certificate is surrendered as part of the process and should no longer be treated as evidence of a separate holding.
You should verify the credited quantity in your Demat account statement after completion.
Can You Sell the Shares After Dematerialisation?
Yes, once the shares have been successfully credited to your Demat account and are otherwise eligible for trading.
You can then use your normal broker/trading account to sell listed securities through the applicable market mechanism.
This is one reason investors often choose to dematerialise old physical holdings.
Physical Shares vs Demat Shares
| Feature | Physical Shares | Demat Shares |
| Form | Paper certificate | Electronic |
| Storage | Physical custody | Depository account |
| Selling listed shares | Restrictions apply to physical transfer | Can generally be sold through normal market process |
| Risk of physical loss | Yes | Significantly reduced |
| Transfer process | Restricted | Electronic |
| Corporate actions | May require additional communication | Generally handled electronically |
| Management | Manual | Online/account-based |
Common Mistakes to Avoid
Submitting Certificates Without Checking the Name
The shareholder name should be checked against the Demat account.
Forgetting the ISIN
The Demat request needs the correct security identification details.
Sending Certificates Directly to the Company
The normal dematerialisation process starts through the DP. Do not send original certificates randomly to a company without following the prescribed process.
Using Another Person’s Demat Account
Dematerialisation is not a shortcut for transferring ownership.
Ignoring Old Corporate Actions
Old shares may have undergone splits, mergers, bonus issues or company-name changes. Check the current status before submitting the request.
Assuming Every Old Certificate Can Be Dematerialised Immediately
Old, disputed, lost, mismatched or unregistered holdings can require additional procedures.
Frequently Asked Questions
Can I convert physical share certificates into a Demat account?
Yes. Eligible physical securities can generally be dematerialised by submitting the required DRF and physical certificates through your DP.
Do I need a Demat account before submitting physical shares?
Yes. You need an active Demat account into which the securities can be credited.
Can I dematerialise shares in someone else’s name?
Generally, no. Dematerialisation does not itself transfer ownership. The names on the certificate and Demat account need to satisfy the applicable requirements.
Can I dematerialise shares if the certificate has two joint holders?
Yes, provided the Demat account has the required joint holding structure and the applicable names/order requirements are satisfied.
Can physical shares still be transferred?
Generally, transfer of physical securities has been stopped since April 1, 2019, subject to specified exceptions and applicable special windows.
What if my physical share certificate is in my father’s name?
If your father is alive, you generally cannot simply dematerialise his shares into your individual Demat account. If he has passed away, the applicable transmission/succession process should be followed.
What if the company has changed its name?
The RTA can help establish the current security details and applicable ISIN. Additional documentation may be required for very old certificates.
Is a Demat Request Form required for every company?
A DRF is used for dematerialisation, and separate requests are generally required for each ISIN. Your DP will provide the applicable form and instructions.
Conclusion
Converting physical share certificates into a Demat account is known as dematerialisation. The usual process involves opening a Demat account, submitting a Demat Request Form and original certificates to your DP, and allowing the DP, depository and company/RTA to verify and process the request.
Before submitting old certificates, check the shareholder name, joint-holder order, folio number, certificate number, distinctive numbers and current ISIN. If the certificate involves a deceased holder, ownership mismatch, lost certificate or an old unregistered transfer, a different procedure may apply.
For investors holding older physical securities in 2026, it is also worth checking whether the current SEBI special window for transfer-cum-dematerialisation applies to their situation.
