Dematerialisation of Shares: Why It Matters & How to Do It Right

Still holding on to paper share certificates? It's time to make a smart move—Dematerialisation of Shares is now not just a convenience, but a necessity.

Still holding on to paper share certificates? It's time to make a smart move—Dematerialisation of Shares is now not just a convenience, but a necessity. In today’s digital financial world, physical shares are prone to loss, damage, and delays in transactions. By converting your physical shares into electronic form, you protect your investments and open the door to faster, safer trading and ownership transfers.

At Investorlink, we help you with end-to-end dematerialisation and also assist with related needs like Duplicate Share Certificate issuance, Name Correction in Share Certificate, and Transmission of Shares in case of a shareholder's demise.

What is Dematerialisation of Shares?
Dematerialisation is the process of converting physical share certificates into an electronic format. These demat shares are held with depositories like NSDL or CDSL and accessed via your Demat account.

Once dematerialised, your shares become easier to manage, transfer, and track—and are much harder to lose or damage.

Why Is Dematerialisation Important Today?

  • SEBI regulations now require demat form for most share transactions

  • Physical share transfers are no longer permitted (except via transmission or legal processes)

  • Demat shares are easier to sell, pledge, or use for financial planning

  • Helps reduce fraud, forgery, and disputes over ownership

When Dematerialisation Often Becomes Necessary

Many clients approach us for dematerialisation of shares while handling:

  • A Duplicate Share Certificate application after misplacing the original

  • A Name Correction in Share Certificate due to spelling errors or legal name change

  • A Transmission of Shares when claiming shares of a deceased relative

  • A Recovery of Shares from IEPF, where shares were transferred due to prolonged inactivity

  • Tracing Unclaimed Investment, where dematerialisation is part of updating ownership

Steps to Dematerialise Your Shares

  1. Open a Demat Account
    If you don’t have one already, we help you open a Demat account with a registered depository participant (DP).

  2. Fill the Dematerialisation Request Form (DRF)
    You’ll need to fill a DRF and submit it along with your original physical share certificates.

  3. Verification & Processing by RTA
    The registrar and transfer agent (RTA) of the company will verify the documents and, once approved, the shares are credited to your Demat account.

  4. Name Matching & Corrections
    If the name on your certificates doesn’t match your PAN or Aadhaar, a Name Correction in Share Certificate must be completed before proceeding.

  5. Receive Electronic Shares
    Once dematerialised, the shares reflect in your account within 15-30 days.

Common Challenges You May Face

  • Lost certificates: We help apply for a Duplicate Share Certificate.

  • Name mismatch: We assist in Name Correction in Share Certificate before demat.

  • Deceased holder: Our experts support you through Transmission of Shares or legal heir processes.

  • IEPF complications: If shares have been transferred to the government, we help in Recovery of Shares from IEPF.

  • Forgotten assets: With Tracing Unclaimed Investment, we help locate and recover assets from multiple sources.

Final Thoughts
The shift to digital investment formats is not just regulatory—it’s smart. Dematerialisation of Shares protects your financial legacy and makes future transactions easier and safer. If you're unsure about the process, or if other issues like name mismatches or unclaimed investments are involved, you're not alone.

At Investorlink, we simplify the entire process. Whether you need help with dematerialising shares, applying for a Duplicate Share Certificate, handling a Name Correction in Share Certificate, or recovering lost investments, we offer complete support from start to finish.

FAQs

1. How long does it take to dematerialise shares?
Typically, 15–30 working days depending on the RTA and correctness of submitted documents.

2. Can I dematerialise shares if I lost the original certificate?
Yes, but first you’ll need to apply for a Duplicate Share Certificate with the company or RTA.

3. What if my name is incorrect on the certificate?
You must get a Name Correction in Share Certificate done before applying for dematerialisation.

4. Can I dematerialise shares that were transferred to IEPF?
Shares in IEPF must first be recovered via the Recovery of Shares from IEPF process. Only then can they be dematerialised.

About the Author

Srishti Jain is a financial recovery consultant at Investorlink, guiding individuals through complex investment recovery processes. She has helped clients with Dematerialisation of Shares, Duplicate Share Certificate applications, Transmission of Shares, and more. Her expertise also extends to Name Correction in Share Certificate, Recovery of Shares from IEPF, and Tracing Unclaimed Investment.


Srishti Jain

1 博客 帖子

注释