How to Convert Physical Shares to Demat in India: Step-by-Step Process & Documents Required in 2026
If you or your families own physical share certificates, you might be wondering how to
convert them to Demat. As securities are increasingly handled electronically,
dematerialisation can help to simplify the management of your investments and
maintain your shareholding records.
physical shares to demat
The process of dematerialising physical shares involves submitting the relevant
documents and physical share certificates to your Depository Participant (DP) and
undergoing verification and processing by the concerned company or Registrar and
Transfer Agent (RTA).
In this guide, we explain the physical shares to Demat process in India, documents generally required, common problems shareholders face, and important updates relevant in 2026.
What is converting physical shares to Demat?
Converting physical shares to Demat means converting paper-based share certificates into electronic securities held in a Demat account.
Following successful dematerialisation, the securities are credited electronically to the
investor’s Demat account. The physical certificate is no longer used as a primary form
of shareholding.
The process is commonly referred to as:
- Physical shares to Demat
- Dematerialisation of physical shares
- Conversion of physical shares into Demat
- Demat of physical share certificates
Can physical share certificates still be converted to Demat in 2026?
Yes. Physical securities can still be submitted for dematerialisation, subject to the applicable requirements and verification process.
However, not every physical-share case is the same and a straightforward
dematerialisation request can be different from a case involving:
- Lost share certificates
- Duplicate share certificates
- Deceased shareholders
- Name mismatch
- Name correction
- Signature mismatch
- Multiple joint holders
- Old transfer documents
- Unclaimed shares
Therefore, it is important to identify the nature of your case before submitting
documents.
Documents Required for Physical Shares to Demat
The specific documents that are required can differ depending on the company, RTA
and circumstances of the shareholder.
The documents that are generally required for a standard dematerialisation request
include:
- Original physical share certificate(s)
- Dematerialisation Request Form (DRF)
- Active Demat account
- Client Master List (CML), where required
- PAN and applicable KYC documents
- Correct shareholder and folio details
- Additional documents, if requested by the company or RTA
Before submitting the dematerialisation request, the shareholder should verify the
name and other details on the physical share certificate with the Demat account and
KYC records.
Step-by-Step Process to Convert Physical Shares to Demat
Step 1: Check Your Physical Share Certificates
The first step is to carefully examine your original physical share certificates.
Check details such as:
- Company name
- Folio number
- Certificate number
- Distinctive numbers
- Number of shares
- Shareholder name
- Joint-holder details, if applicable
Also check whether the certificate is damaged or whether any important information appears incorrect.
Step 2: Have an Active Demat Account
To hold the securities electronically, you need an active Demat account with a Depository Participant (DP).
If you already have a Demat account, verify that the account is active and that the relevant shareholder
details are correct.
Step 3: Verify the Shareholder Details
Compare the details on the physical share certificate with your current Demat account and KYC records.
Common differences include:
- Spelling differences in
- names
Change in name - Different order of names
- Differences between joint holders
- Signature mismatch
Outdated KYC information
If there is a discrepancy, additional documentation or a separate investor-service process may be required.
Step 4: Complete the Dematerialisation Request
The required Dematerialisation Request Form (DRF) needs to be completed with the relevant details.
The information may include:
- Demat account details
- Depository Participant details
- Company name
- ISIN
- Folio number
- Certificate number
- Distinctive numbers
- Number of securities
- Shareholder details
Make sure the information is accurate before submitting the request.
Step 5: Submit the Documents Through Your Depository Participant
Submit the completed dematerialisation request and original physical share certificates to your Depository
Participant.
The DP initiates the dematerialisation request and forwards the relevant request through the applicable
depository process.
Step 6: Verification by the Company or RTA
The concerned company or Registrar and Transfer Agent verifies the request and shareholder records.
The verification may include checking:
- Folio records
- Certificate details
- Shareholder information
- KYC requirements
- Existing restrictions or objections
- Supporting documents
If any information or documentation is incomplete, additional clarification or documents may be requested.
Step 7: Shares Are Credited to the Demat Account
Once the request is successfully processed and approved, the securities are credited electronically to the
relevant Demat account.
This completes the basic physical shares to Demat process.
Important 2026 Update for Physical Shareholders
SEBI introduced important changes in 2026 concerning certain investor-service requests.
From April 2, 2026, the requirement for issuing a Letter of Confirmation for certain investor-service
requests was removed, with direct credit of securities to the investor’s Demat account after the required
due diligence by the listed company and RTA.
The change applies to specified investor-service requests, including certain cases involving duplicate
securities, transmission, transposition and claims from unclaimed accounts.
Because procedures can change, shareholders should always verify the latest requirements applicable to
their specific case.
How Long Does It Take to Convert Physical Shares to Demat?
The processing time can vary depending on the company, Registrar and Transfer Agent, Depository
Participant and complexity of the case.
A straightforward dematerialisation request may have a different processing timeline from cases involving:
- Lost certificates
- Deceased shareholders
- Name changes
- Multiple joint holders
- Old transfer documents
- Duplicate securities
- Unclaimed shares
Therefore, there is no single processing time applicable to every physical-share case.
Can Old Physical Share Certificates Still Be Dematerialised?
In many cases, yes.
The age of a share certificate alone does not necessarily mean that the securities cannot be dematerialised.
However, older certificates may involve additional issues such as:
- Outdated addresses
- Name differences
- Corporate actions
- Missing KYC information
- Changes in the company’s RTA
- Old shareholder records
- Pending investor-service requests
For this reason, it is useful to review the certificate and shareholder records before beginning the process.
Why Should You Convert Physical Shares to Demat?
Dematerialising physical shares can make securities easier to hold and manage electronically.
Some potential advantages include:
However, older certificates may involve additional issues such as:
- Electronic holding of securities
- Easier portfolio management
- Reduced dependence on physical certificates
- Easier management of investments
- Better accessibility of holdings
- Simplified handling of eligible corporate actions
For shareholders holding old physical certificates, dematerialisation can also help organize their investment
records
Professional Assistance for Physical Shares to Demat
Converting physical shares to Demat can be straightforward when the shareholder records, certificates and documentation are complete.
However, older physical-share cases can become more complicated when there are issues involving name mismatch, lost certificates, transmission, duplicate certificates, multiple folios, old transfers or unclaimed shares.
PSSI – Physical Shares Service India assists shareholders with physical-share related requirements and documentation, including:
- Physical Shares to Demat
- Duplicate Share Certificate Assistance
- Transmission of Shares
- Name Correction
- Name Deletion
- Signature Mismatch Assistance
- Recovery of Old & Unclaimed Shares
- IEPF Claim Assistance
If you are holding physical share certificates and are unsure about the next step, PSSI can help you
understand the requirements applicable to your case.