SEBI has mandated that all shareholders holding physical share certificates must dematerialise their shares. After the deadline, physical shares cannot be transferred, pledged, or sold. Check the latest deadline with your registrar or depository participant — timelines have been extended in the past and may continue to be reviewed.
Dematerialisation (demat) is the process of converting physical share certificates — paper documents — into electronic form held in a demat account with NSDL or CDSL. SEBI made this mandatory to eliminate risks associated with physical certificates: loss, theft, forgery, and the delay involved in paper-based transfers.
For decades, Indian investors held shares in physical form — paper certificates issued by companies. As capital markets modernised, SEBI progressively tightened the rules. Since April 2019, transfers of physical shares have already been prohibited. The next and final step is mandatory dematerialisation of all remaining physical holdings.
SEBI has issued notifications requiring all investors to convert physical shares to demat. The deadline has been communicated through SEBI circulars and amended multiple times. As of 2026, the mandate broadly applies to all listed company shares — which means if you still hold physical certificates of any listed company, you are required to dematerialise them.
While specific deadline dates may be extended or updated through fresh SEBI circulars, the direction is clear and firm: physical shares in listed companies must be dematerialised. It is advisable to complete the process as early as possible rather than wait for further deadline extensions.
Unlisted companies: The SEBI mandate applies primarily to listed company shares. For shares of unlisted or private companies, different rules apply — but the practical guidance for record-keeping and succession is similar.
If physical shares are not dematerialised by the deadline, shareholders face serious consequences:
If you don't already have one, open a demat account with a Depository Participant (DP) — any registered broker or bank. You'll need PAN, Aadhaar, bank account, and passport photo.
Collect all physical certificates. Note the company name, folio number, certificate numbers, and distinctive number range for each certificate.
Obtain the DRF from your DP. Fill it accurately — company name, ISIN code, number of shares, folio number. Sign on the certificates as well (defacement / cancellation signature required).
Submit the DRF along with the original physical certificates to your DP. They will verify the documents, create a Dematerialisation Request Number (DRN), and send the request to the company's registrar (RTA).
The Registrar and Transfer Agent (RTA) verifies the certificates against their records. Upon confirmation, shares are credited to your demat account electronically. This typically takes 15–30 days.
The straightforward cases go through smoothly. But many investors face complications that can stall the process for months:
| Aspect | Physical Certificate | Demat Form |
|---|---|---|
| Storage | Paper document, risk of loss/damage | Electronic, held safely with depository |
| Transferability | Not transferable for listed shares (post-2019) | Freely transferable via demat account |
| Sale on exchange | Not permitted | Can be sold anytime during market hours |
| Corporate benefits | May be delayed or misrouted | Auto-credited to demat account |
| Succession | Complex, time-consuming | Simpler transmission process |
| Risk of forgery | Higher | None |
Many families discover share certificates from the 1970s, 1980s, or 1990s — tucked away in old documents. These can still be dematerialised, but require extra care. Companies may have merged, changed names, or been delisted. The RTA may be different from what's printed on the certificate. The folio may be in a family member's name who has since passed away.
In these cases, it's worth getting professional guidance before submitting to your DP — to avoid rejected applications and wasted time. The process is navigable, but each situation is different.
Don't discard old certificates even if you think they're worthless. Many companies from the 1980s and 90s have been acquired by larger listed entities. Old certificates may translate into shares of significant current value once traced and dematerialised.
Investor Helpdesk is a Company Secretary practice in Jaipur that specialises in physical share certificate dematerialisation — including complex cases. We assist with:
The initial case assessment is free. We tell you what's feasible before any fees are discussed.
Send us your certificate details on WhatsApp — we'll assess your case and tell you exactly what's needed. Free, with no obligation.
Yes, dividend payments continue even for physical shares held in your folio. However, other corporate benefits like bonus shares or rights issues may not be processed correctly for physical holdings. More importantly, dividends that go unclaimed for 7 consecutive years may result in your shares being transferred to IEPF.
A lost certificate is not the end of the road. A duplicate certificate can be issued by the company/RTA after following a prescribed process — including filing an FIR, publishing a newspaper notice, and submitting an indemnity bond. Once the duplicate is issued, dematerialisation can proceed. This process takes time, so it's better to start early.
No. Investor Helpdesk handles all cases remotely — via WhatsApp, email, and courier. If you're in Jaipur and prefer a visit, you're welcome, but it's not required.
For straightforward cases with no complications, 15–30 working days from submission to your DP. For complex cases — name mismatches, deceased holders, old certificates — the timeline is longer and depends on the RTA and the specific issues involved.
A folio number is the unique identifier the company/RTA uses to maintain your shareholder record. It is printed on your share certificate. You'll need it for the DRF and for any correspondence with the company or RTA. If you can't find it, it can sometimes be traced through the company or RTA using your name and address.