How to Convert Physical Shares to Demat Before it’s Too Late
As you have heard that, Shares Dematerialization is necessary for share transfer. Basically Dematerialization process converts physical share to electronic format. The Share in electronic form can be stored in the Demat Account at NSDL or CDSL. SEBI had amended the LODR regulations which stand for Listing Obligation and Disclosure Requirements and also made it mandatory for shareholders to convert physical share certificates into dematerialized form.
To make the Dematerialization process hassle-free the government made each of the steps very simple and you can know the exact process from the below. So, how do you convert physical shares into dematerialized certificates?
Simple Process to Convert Physical Shares to Demat
- First of all, get ready PAN card and other identity proof and their copies.
- Now, open a Demat account by reaching up to a depository such as National Securities Depository Limited (NSDL) and Central Depository Services (CDSL). You will need some additional documents here.
- Get a Demat request form, fill it carefully with all accurate details, and surrender the share certificates with it.
- The depository will then send an electronic request to the registrar and transfer agent (RTA) along with the physical shares.
- The Register and transfer agent will then verify all the physical shares, and if found in order, the RTA will write “surrendered for Demat” on them.
- After it, the RTA will approach the company. For the amendment in the register of members of the company, once it is done, a confirmation will be sent to the depository.
- Then, finally, the Demat account with the depository participant will be issued and credited with all the Demat shares.
If you want to convert physical share to Demat, You can follow all the steps given above. If you are looking for and RTA Agent then contact SAG RTA (Registrar and Share Transfer Agent).
SAG Infotech’s SAG RTA is accredited by SEBI, it is one of the leading RTA Services providers. Feel free to contact us to know more about our services.