How to Convert Physical Share Certificates into Demat Form?

If you have old physical share certificates tucked away in forgotten files, dusty drawers, or inherited documents, you can dematerialise them and encash their value. On April 1, 2019, SEBI banned the transfer of physical share certificates unless they are dematerialised. 

What is dematerialisation?

Dematerialisation is the process of converting physical share certificates into an electronic form, allowing them to be held and traded digitally through a Demat account.

Read on to know how the dematerialisation procedure works.

Step-by-Step Procedure To Convert Physical Share Certificates To Demat With Groww 

Step 1: Visit https://groww.in/download-forms 

Step 2: Download the “Dematerialisation Request Form”. 

Step 3: Fill in the DRF form accurately with the following details: 

1. Demat account number
2. Name of the company
3. ISIN
4. Folio No. 
5. Certificate No.
6. Distinctive No.
7. Quantity
8. Face value
9. Number of certificates
10. Total quantity in figures
11. Total quantity in words
12. Name of the customer 
13. Signature with DP & Signature with RTA

Sample DRF form

Step 4: Courier the filled DRF form along with physical share certificates and a self-attested copy of the PAN card & Aadhaar to:

“1st Floor, Obeya Tulip, 

Regent Insignia, No. 414/8, 4th Block, 

Koramangala, Bengaluru 560034”

Step 5: Groww will verify & process the submitted documents & send them to the Registrar & transfer agent (RTA) of the respective company. This process usually takes 20 to 30 days. 

Step 6: Once approved, the RTA will cancel the physical certificates, and equivalent shares will be credited to your Demat account electronically.  

Note: If any rejection occurs, the customer will be notified via email or phone call. 

To avoid this, ensure the following checkpoints are carefully verified before submitting physical share certificates for dematerialisation. 

Important Pre-Submission Checks to Avoid Rejection of Demat Request

• Company Name: Ensure the company name mentioned on the certificate is currently listed and eligible for demat. You can confirm this on the NSE and BSE websites. For unlisted companies, refer to this list. 
• Face Value: The face value printed on the physical certificate must match the company's current face value. To know this, visit the NSE/BSE website. Search for the company name (for instance, HDFC Bank) and look for the “face value”.

• Security Type: The type of security (e.g., equity, preference shares, etc.) should match what’s mentioned on the certificate. 
• Number of Holders: The number of shareholders named on the certificate should match the number listed in the demat account. If the certificate is jointly held, the demat account must also be in the same joint names and order.
• Name Match: The name(s) on the certificate must exactly match the name(s) in the demat account. If there's a mismatch in spelling or order, you’ll need to provide a notarised affidavit explaining the difference.