If you have shares in physical form and wish to transfer them after 1st April 2019, you may not be able to do so. According to a notification by the Securities and Exchange Board of India (Sebi) in June this year, you can hold shares in the physical form after April 1, 2019, but cannot transfer these securities unless they are in the demat form.
Paper share certificates are an anachronism in these days of electronic trading and the Internet. Today, most shares are in dematerialized form, that is, in electronic form. There are no paper certificates, and your shares are held in what is called a demat account, keeping a record of the shares you own. All demat accounts in India are maintained by two authorities — the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL).
It’s estimated that a little over 2% of shares are still held in paper form. If you still have physical share certificates lying in a cupboard somewhere, it’s time to dust them out and convert them in to dematerialized form. Why, you may ask? In a bid to bring in more transparency in shareholding of companies and to prevent frauds, Sebi has made it mandatory to transfer shares only in demat form from April 1. However, this does not mean that you cannot hold shares in the physical form, but you cannot transfer them, which can affect their value.
Here’s what you need to convert your physical shares into demat form.
Step 1: Open a demat account
The first step is to open a demat account. This can be done by a depository participant (DP), which could be your bank or your stockbroker. You need to fill a form and submit copies of proof of address and identity documents (PAN card, Aadhar card, passport), along with a passport-size photograph.
After processing the document, the DP will open a demat account in your name, with an account number of your own. The demat account is just like a bank account, keeping a record of your shares instead of money.
Some brokers allow you to open a demat account online. To do this, you have tosubmit scanned copies of the required documents. An in-person verification will be done using online video chat.
Step 2: Surrender the share certificates
After opening the DP account, you need to surrender the physical certificates to the DP along with a Dematerialisation request form (DRF). You should use separate DRFs for securities of different companies.
Before you submit the certificates, you must deface them by writing “SURRENDERED FOR DEMATERIALISATION” on the certificates. The DP will then verify that all the details in the form are correct, like the number of certificates, securities, type and so on. After that it will issue an acknowledgement slip to you.
Here are some of the things you may have tofill up on the DRF:
- DP-ID (ID issued to you by your depository participant)
- Account number
- Date
- Choose physical certificate or option letter surrendered
- Account Holder Name
- The number of securities to be dematerialized
- Name of the security (as it is on the certificate)
- The face value of the security
- Type of security (equity or debenture or any other)
- Folio number, certificate number and distinctive number
- Total number of shares surrendered
- Signature
- Acknowledgement
Step 3: Wait for credit of shares to your demat account
After you submit the DRF and share certificates, the depository participant will send the certificate, form and covering letter to the issuer or R&T (registrar and transfer) agent. If everything is in order, the issuer or R&T agent will accept the dematerialisation request in his system and forward it to the National Securities Depository Ltd (NSDL), the central securities depository. The depository module of the NSDL will then authorize the creation of appropriate credit balances in your account for the surrendered shares. After that, you can check your demat account if everything is in order.
Can your request for demat be denied?
In certain cases, the DP may not accept your request for dematerialisation. These instances include:
- If the share certificates are mutilated, and the information is not easily readable. In this case, you may have to send the certificates to the issuer/ R&T agent and get new ones
- If you use a single DRF to dematerialise securities of more than one company
- If you use a single DRF for fully paid-up and partly paid-up securities
Click here if you want help converting your physical certificates to demat.
hello all of you.
plz guide me in a better way.
I have few stocks in physical form which I do not wish to sell before 5 yrs..
can I demat after 5 yrs when I wish to sell.
secondly is there anyone who can guide me rightly my maa had invested in kvp of post office in 1989.
but due to shifting she lost her original certificates and she has just Date of deposit and name of post office..
but department people are harassing us and saying the record is not available.
plz help us.
Dear Poonam,
Thanks for reaching out to us. According to SEBI LODR Amendment Regulations, effective 31st March 2019, requests for effecting transfer of securities in physical form shall not be processed unless the securities are held in the dematerialized form with a depository.
You may access the circular from the website of the Bombay Stock Exchange using the following link:
https://www.bseindia.com/corporates/CirularToListedComp.html
We request you to write to us at einward.ris@karvy.com with following details which will enable us to assist you further:
4) Folio no
5) PAN number
6) Certificate number
Alternatively, you can contact us on 1800 3454 001 (Toll Free)
However, please note we will be unable to help you with respect to Kisan Vikas Patra (Post Office).
Team Karvy
i want to transfer or sell physical share of of Reliance group of co.
I am having reliance gorup of co share in three differnt name
1st Name is mine 2nd name is my Father (old age cant sign)
2nd Name is my Mother ( Died)
2nd name is my freing (not in town)
Please advice what to do.
Regards
Krishna d. Pai
Mumbai
Dear Krishnand,
Thanks for reaching out to us. We request you to write to us at einward.ris@karvy.com with following details which will enable us to assist you further:
1) Folio no
2) PAN number
3) Certificate number
Alternatively, you can contact us on 1800 3454 001 (Toll Free)
Team Karvy
I understand that you cannot trade in physical shares after 1sr April 2019 but can you continue to convert your physical shares after his date. Is there a bar against converting after this date.
Dear Anita,
Thanks for reaching out to us. According to SEBI LODR Amendment Regulations, effective 31st March 2019, requests for effecting transfer of securities in physical form shall not be processed unless the securities are held in the dematerialized form with a depository.
You may access the circular from the website of the Bombay Stock Exchange using the following link:
https://www.bseindia.com/corporates/CirularToListedComp.html
We request you to write to us at einward.ris@karvy.com with the following details enabling us to assist you further.
1) Folio no
2) PAN number
3) Certificate number
Alternatively, you can contact us on 1800 3454 001 (Toll Free)
Team Karvy
my father purchase 200 share of bank of india. but in 2008 he was died . now what is the process for transfer the shares .
Dear Jatin,
Thanks for reaching out to us. To get your father’s shares transferred, we request you to contact Bank of India as we are not the concerned registrar. They will be able to help you out.
Team Karvy
I have misplaced my share certificates in the process of getting duplicate ones. Since the deadline will be over can I gift the physical shares to my daughter once I receive it and then have it dematerilised as she too has a demat account.
Please advise.
Dear Hema,
Thanks for reaching out to us. According to SEBI LODR Amendment Regulations, effective 31st March 2019, requests for effecting transfer of securities in physical form will not be processed unless the securities are held in the dematerialized form with a depository.
We request you to get the shares dematerialized on your name and then transfer the share to your daughter’s demat account.
For further clarifications we request you to write to us at einward.ris@karvy.com with following details thus enabling us to assist you further:
1) Folio no
2) PAN number
3) Certificate number
Alternatively, you can contact us on 1800 3454 001 (Toll Free)
Team Karvy
Sir,
I have some physical share certificates. So I want to demat the share certificates. Can you give me guidelines if it is possible.
1. Prakash Industries. 2. Ganesh Polytex. 3. Nova Iron and steel etc.
Dear Vara Kumar,
Please submit the original share certificates along with duly signed demat request form to your DP for demat of shares.
Team Karvy
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physical share transfer to demat account form
Hii
i have some physical shares of reliance various companies which are now merged, so before demating the shares they are asking me to bring fresh new physical shares of the company in which the old share is merged. How can KARVY help me out with it?
Dear Deepak,
We request you to provide company specific information to kfpl.support@karvy.com to enable us to serve you better.
Team Karvy
Quality articles or reviews is the main to interest the visitors to pay a quick visit the site, that’s what this website is providing.
Please tell me that the DRF form gets submitted to the DP or goes to the R&T?
Good morning to you.
I have 100 share of HDFC bank in physical form. I want to convert it to electronic . Pleas elet me know hat are the procedure and how I will convert this.
I have a few holdings in physical form (Karvy is the registrar for most). These shares have joint holders. I am no longer an Indian citizen (OCI holder). I was told there is no way to open a demat account other than to liquidate the shares. Can I transfer the shares to one of the joint holders (and, make them the sole holder) since they are an indian citizen? If yes, what is the process of making one of the joint holders the sole holder? Does this person need to have a demat account for the transfer?
thanks
Dear Mr. Shankar,
Please be informed that as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, any requests for transfer of securities held in physical mode, except for the transmission or transposition of securities, cannot not be processed beyond March 31, 2019.
With regards to the same, we hereby advise you to get your shares dematerialized at the earliest. For further queries, please write an E-mail at kfpl.support@karvy.com
Thanking you,
Team Karvy
My grandfather purchased 100 shares of Reliance Industries Limited in physical format,but he expired few years back. How can I transfer these shares into my father(sole nominee) demat account.
Dear Amrit,
We request you to send the copies of the below mentioned documents at the address given at the end, to enable us transmit the shares in favour of Legal Heir(s),
If the shares value is less than 2 lac then the documents needed are as under:
1. A request letter duly signed by legal heirs.
2. An attested copy of the death certificate of deceased.
3. Copy of Letter of Administration / Probate / Succession certificate, duly attested/notarised.
OR
Letter of Indemnity on non-judicial stamp paper (NJSP) of Rs.500/- and a affidavit executed on Rs.100/- on (NJSP) duly attested/notarised (format enclosed).
4. Original share certificate(s).
5. Attested copy of Legal Heir Certificate is required.
6. Provide Legal Heir(s) Proof of address documents like Telephone Bill / Electricity Bill / Voter ID Card/Driving License etc if there is any change in address.
7. Self attested copy of PAN Card(s).
8. Cancelled cheque leaf.
In case, the shares value is more than 2 lac then documents needed are as under:
1. A request letter duly signed by legal heirs.
2. An attested copy of the death certificate of deceased.
3. Copy of Letter of Administration / Probate / Succession certificate, duly attested/notarised.
4. Original share certificate(s).
5. Provide Legal Heir(s) Proof of address documents like Telephone Bill / Electricity Bill / Voter ID Card / Driving License etc if there is any change in address.
6. Self attested copy of PAN Card(s).
7. Cancelled cheque leaf.
Address :
Karvy Fintech Private Limited
Karvy Selenium Tower B, Plot Nos. 31 & 32 | Financial District
Nanakramguda |Serilingampally Mandal | Hyderabad – 500032 | India
Thanks & Regards,
Team Karvy
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i purchased TVS srichakara shares in 1990 and still i have been receiving divided every year but it’s in physical certificate, so i would like to add to ICICI demat.
Could you guide me what is the procedure to transform shares into demat from physical certificate.
Best Regards,
Venkatesh
Dear Venkateshwara Rao,
Please share your folio no./PAN no./ account/customer Id and registered contact details to kfpl.support@karvy.com to enable us to serve you better.
Thanks,
Team Karvy
Hi Team,
My father have physical shares of Bank of India, and he also have a DEMAT account, kindly advice how these physical shares can be transferred in his DEMAT account.
Regards
Mohd Saqib
Dear Mohd Saqib,
Please share your PAN no./ account/customer Id and registered contact details to kfpl.support@karvy.com to enable us to serve you better.
Team Karvy
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Hi Team,
My father have physical shares of Reliance Group of Co. ,and he purchased these shares back in 1990 through KARVY only. kindly advice how these physical shares can be transferred in his DEMAT account.
Regards
Sumit kumar Yadav
I have some physical share certificates. So I want to demat the share certificates. Can you give me guidelines
1. DLF CEMENT LIMITED (200-SHARES)
2. MAHADEV CORPORATION (INDIA) LIMITED (500-SHARES)
3. MORGAN STANLEY MUTUAL FUND ( UNITS OF MORGAN STANLEY GROWTH FUND )(200-SHARES)
Hi Team,
My father has shares from SBI from 1985. Could you please guide us how to convert them from physical form to Demat form. We really need your assistance since we are located remotely.