If you hold old physical share certificates, you can still legally own them, but since 1 April 2019 you cannot sell or transfer them until they are in demat (electronic) form. To convert them, open a demat account with a Depository Participant, fill a Dematerialisation Request Form, surrender the original certificates, and the shares are usually credited to your account in about 15 to 30 days.
Many people discover this when a parent or grandparent passes away and a folder of decades-old share certificates turns up. The shares may still be valuable, but the paper alone is now a dead end for any sale. This guide walks you through exactly what to do, in plain language.
The Securities and Exchange Board of India (SEBI) changed the rules for listed company shares. With effect from 1 April 2019, a listed company and its registrar cannot accept a request to transfer shares held in physical form. The shares must first be in demat form.
This does not mean your old certificates are worthless or that you are breaking any rule by holding them. You can continue to hold physical certificates. But the moment you want to sell, gift, or transfer the shares to anyone, you must dematerialise them first.
SEBI tightened this further from January 2022. Now, listed companies issue securities in demat form only when they process most investor service requests, such as a duplicate certificate, a name change, transmission to a legal heir, or splitting and consolidating certificates. Instead of a new paper certificate, you receive a Letter of Confirmation and then have the shares credited to your demat account.
In short: holding old physical shares is allowed, but doing almost anything useful with them now requires demat.
You need a demat account with a Depository Participant (DP). A DP is usually your bank or a stockbroker registered with one of the two depositories, NSDL or CDSL. If you do not already have one, our guide on how to open a demat account covers the paperwork, KYC, PAN, and nomination requirements.
Look at each certificate. Note the company name, the folio number, the certificate number, the distinctive numbers, and the quantity of shares. The name on the certificate should match the name on your demat account. Small mismatches in spelling or initials can hold up the process, so flag any difference to your DP early.
Ask your DP for a Dematerialisation Request Form (DRF). You fill in your demat account number, the company name, the ISIN of the security, and the number of shares. Submit one DRF per company and per type of holding.
Hand over the original physical certificates with the DRF. The certificates are defaced, that is, stamped with words like “Surrendered for Dematerialisation”, so they cannot be reused. Keep photocopies and the acknowledgement your DP gives you.
Your DP verifies the form, generates a request number, and sends the form and certificates to the company's Registrar and Transfer Agent (RTA). The RTA checks that the certificates are genuine and free of any dispute.
Once verification is complete, the equivalent number of shares is credited electronically to your demat account. This usually takes about 15 to 30 days, though it can take longer if documents need correction.
Old holdings throw up common problems. Here is how to handle them.
There is a clock running on shares you ignore. If the dividend on a share stays unclaimed or unpaid for seven consecutive years in a row, both the unpaid dividend and the underlying shares are transferred to the Investor Education and Protection Fund (IEPF).
Once that happens, the shares are no longer with the company. You must claim them back by filing Form IEPF-5 online and sending supporting documents to the company or its RTA. Recovered shares are returned only in demat form, so you will need a demat account ready. Our guide on claiming unclaimed shares and dividends through Form IEPF-5 explains that process in detail.
The safest move is to dematerialise and keep your contact and bank details updated, so dividends reach you and the seven-year clock never starts.
Yes. Holding shares in physical form is still legal. What you cannot do, since 1 April 2019, is transfer or sell them to anyone while they remain on paper. To do that, you must dematerialise them first.
It usually takes about 15 to 30 days from the date you surrender the certificates, provided all documents are in order. Name mismatches, old company names, or missing paperwork can stretch this out, so it is worth checking details before you submit.
Shares whose dividend was unclaimed for seven straight years move to the IEPF. You can still get them back by filing Form IEPF-5 online and submitting documents to the company or RTA. The shares come back into a demat account, so open one if you have not already.
You typically need the original physical certificates, a filled Dematerialisation Request Form, your PAN, and a demat account in the same name as the certificates. For inherited shares, add the death certificate and legal heir or nominee documents.
If shares vanish from your demat account or appear pledged without your consent, you can raise a complaint with the depository and SEBI. See our guide on missing or wrongly pledged demat shares.
Start by gathering every certificate and listing the company names and quantities. Open a demat account if you do not have one, then approach your DP with the certificates and a DRF for each company. If any holding is stuck or unclaimed, act within the relevant SEBI window or file the IEPF claim. When you eventually sell, remember that capital gains tax may apply, so keep records of your original purchase.
For a deeper understanding of your information and grievance rights as a citizen, see The RTI Playbook.