How To Convert Physical Shares To Demat

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In 2019, the Securities and Exchange Board of India (SEBI) implemented a plan to bring transparency to the capital markets by mandating that shares can be transferred in the stock markets electronically. This implies that you may continue to hold your physical shares; however, you cannot transfer their ownership. To transfer or trade your paper shares, you must convert them into the Dematerialised form using a Demat account. The process involves converting your physical paper shares into an electronic format. This article presents a study on how to convert physical shares into Demat.

Steps to convert shares into Demat form

Follow these steps to understand how to Demat physical shares:

Individuals must submit a Dematerialisation Request Form (DRF) to start the conversion process of paper-based securities into the Dematerialised form. Let us elaborate on the process.

Step 1: Apply for a Demat account

The first step to convert physical shares to Demat requires you to open a Demat account. You will be required to submit some primary KYC documents, such as identity and address proof, along with your photo and account opening form

Step 2: Fill out the Request Form

Contact your Depository participant and request a Dematerialisation request form (DRF). Submit this filled-out form to your Depository participant.

Step 3: Surrender your paper certificates

Submit your physical share certificates and write “surrendered for Dematerialisation” on them along with the DRF.

Step 4: Registrar and Transfer Agent

After submitting your DRF form and paper share certificates, your depository participant will notify the Registrar and Transfer (R&T) agent electronically. Additionally, a Dematerialisation registration number will be generated for your application form, which will go into your DRF and be sent to the T&R agent along with your physical share certificates.

Step 5: Verification and completion

The T&R agent will run a validity check on your documents. Transferring physical shares into Demat form typically takes around two to three weeks. Once your DRF is successfully verified along with the physical shares, you will receive an electronic request for converting your physical shares to Demat form. The Dematerialised shares are then credited to your Demat account.


You may continue to trade your shares once converted into Dematerialised form. The process involving how to convert physical shares to Demat is straightforward and saves you from hassles such as storing your share certificates. However, you must ensure that your physical shares are still listed on the stock exchange. If your physical shares get delisted from the stock exchange, these certificates lose all their value.

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Can I open multiple demat accounts?

Answer Field

Yes, you can open multiple demat accounts but only under the below conditions:

  • You can open only one demat account per DP using the same PAN card.
  • You can open multiple demat accounts with different DPs using the same PAN card.

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