Are you having any physical share which are need to convert into Demat form..? Are you looking how to convert those shares into Demat then this Article for you.
As per the mandate of Securities and Exchange Board of India (SEBI), only shares in the electronic format can be sold or transferred at the stock markets. It does not mean you cannot hold shares in the physical form, just that you cannot sell or transfer them.
Can we sell physical shares ..?
In order to sell/transfer your physical shares first you need to covert those in dematerialized form then only you can trade those.
What is Dematerialization..?
Dematerialisation is the process of converting physical shares of a company into electronic format. Shares are converted into dematerialised form and held in a new demat account.
Steps to Convert Physical share to Demat form.
Step 1: Verify that Company(shares you holding) still listed in Exchanges, If company delisted,then the physical shares you are holding not helpful, If the Company is still listed in Exchanges then only you can trade.
Step 2: Open demat account.
Now a days there are plenty of stockbrokers who are offering demat account with less charges and more convninence, you can open your account with any of them, All you need to do is just do KYC and submit some more documents like Pan and Address proof.
Please make sure that account should be opened in name of shareholders only, If multiple share holders name mentioned in physical shares , then the order of holding should be mentioned in Demat account.
Step 3: Submit Dematerilization Request Form.
After you demat acount got activated, You have to send you physical shares along with Dematerialization Request form to the demat company.If you are having shares of different companies you need to send different form for each company and keep a note on physical shares that you submitted for Dematerialization.
Step 4: Sell/Transfer shares.
Once you submitted the DRF , you will get acknowledgement slip, If you request is verified and approved then shares will be credited to your demat account,This process will take 15- 30 days. Then you can Initiate Sell/Transfer request.
Thanks for reading