Here are 5 steps to convert physical shares into demat

It is easier than you think to convert physical share certificates into a demat account.

Securities and Exchange Board of India (SEBI)

New Delhi: Although SEBI has extended the deadline to convert Physical Shares in Demat mode to 1st April 2019; however, it is only for the investors own benefit to dematerialize the physical scrips s/he’s been holding. It is easier than you think to convert physical share certificates into a demat account. Listed below are the steps to open a demat account and surrender your physical certificates for converting them into electronic or demat mode with a depository:

How to convert Physical Shares into Demat?

Step 1 – Choose a Depository Participant (DP) from a list of authentic DPs or Agents from the official websites of NSDL or CDSL India Step 2 – Fill the DEMAT account opening form with your chosen depository and furnish photocopies of financial documents like your PAN Card, along with a valid ID and address proof. Also, make sure the name on your Demat account is same as mentioned in your physical share certificate. Step 3 – Understand the terms of contract, responsibilities for you as an investor and of the DP as your demat handler, the fee future transactions or handling your demat account will entail, and other details before you sign the agreement and walk out with a BOID i.e. Beneficial Owner Identification Number aka the Demat Account Number Step 4 – Fill a Dematerialization Request Form (DRF) Step 5 – Mark the Physical Certificates that you wish to dematerialise as ‘Surrendered for Dematerialization’ and submit it to your DP Your Depository Participant will then forward your DRF in the Depository system and submits your surrendered certificates with the Registrar and Share Transfer Agent (RSTA) of the company. Upon successful approval of your dematerialization request, the RSTA updates its accounts and confirms it with the depository. Once the depository updates your details in its system, your DP is notified, who in turn updates your Demat account. Remember, the entire process can take anywhere from two to three weeks’ time before you can dispose off your physical shares and reap the benefits of online trading via a demat account.