Conversion of Physical Shares to Demat

Government of India has banned the transfer of physical shares of listed/unlisted/delisted companies from 01.04.2019 onwards except in case of Transmission of shares.

SEBI Guidelines

The Board, on March 28, 2018, decided that except in case of transmission or transposition of securities, requests for effecting the transfer of securities shall not be processed unless the securities are held in dematerialized form with a depository. This measure shall come into effect from April 01, 2019.

Subsequently, SEBI has received representations from shareholders for extension of the date of compliance. In view of the same, the following are hereby clarified:

The above decision does not prohibit the investor from holding the shares in physical form; investor has the option of holding shares in physical form even after April 01, 2019.
Any investor who is desirous of transferring shares (which are held in physical form) after April 01, 2019 can do so only after the shares are dematerialized.
The transfer deed(s) once lodged prior to the deadline and returned due to a deficiency in the document may be re-lodged for transfer even after the deadline of April 01, 2019.
The above Board decision is not applicable for DMAT of shares, transmission (i.e. transfer of title of shares by way of inheritance/succession) and transposition (i.e. re-arrangement / interchanging of the order of name of shareholders) cases.”

Why SEBI is doing this?

  • The intention was to protect investors from frauds. In the past, there have been cases wherein physical shares of genuine investors were obtained by fraudsters by asking the registrar to issue duplicate shares.
  • To facilitate the Government to have a record of shares issued by the company.
  • To facilitate users to keep a track of Shares and to reduce the unclaimed dividend/shares.

Conclusion

  • Now you can sell shares only in Demat mode.
  • If you hold physical shares in your name, you must get it converted to Demat.
  • You need to have a Demat account which exactly matches the names on the share certificate.

Difficulties Faced by Investors

There can be many hurdles which an investor may face such as signature mismatch, address mismatch, name mismatch and how to fill DRF form, etc.

For different companies share the investor need to contact the different registrar.

Whom to Contact

We at IEPFZone.com, have a team of experts to help you convert the shares to your demat account very easily, as we are well versed with the procedures of various different registrars.

There are more than 50 different registrars across India and hence it is difficult for the investor to approach each registrar for every folio.

Also, an investor may have old shares. They may not have the new share certificates following corporate actions such as merger/demerger/split/bonus etc. We help the investor reclaim the new share certificates and then get it converted to Demat. The procedure may involve filing a lot of affidavits and indemnity bonds, giving gazette notifications and newspaper advertisements. We charge very nominal fees and make sure the entire procedure is very smooth for the investor.

Our Services

We also give services of share transmission. Click here to check details of our share transmission service.
We also give services to avail duplicate shares if the shares are lost.
Please note that these services are given assuming the shares are not under dispute and you are the genuine shareholder.
We have our teams across PAN India to assist you with further queries.
Kindly get back to us for more information.

    One more query, I have 3000 Cochin International Airport shares in physical form which I want to sell. As it is the unlisted share how do I know the value of this investment?

    For selling shares after 01.04.2019, the physical shares first need to convert into Demat form. Once that is done, then you are free to sell to anyone. The Cochin International Airport is currently available at Rs. 225 per share in the unlisted market. More detail can be accessed at http://www.unlistedzone.com. We will help to sell Cochin International Airport once shares get into demat. Thanks.

    For selling shares after 01.04.2019, the physical shares first need to convert into Demat form. Once that is done, then you are free to sell to anyone. The Cochin International Airport is currently available at Rs. 225 per share in the unlisted market. More detail can be accessed at http://www.unlistedzone.com. We will help to sell Cochin International Airport once shares get into demat. Thanks.