How to Convert Old Physical Share Certificates to Demat

You cannot sell physical share certificates any more. If your family is holding old paper shares, they must be converted to demat to unlock their value. Here is the full process.

Many families in South India have old share certificates tucked away in a locker or an almirah — bought decades ago, sometimes by a parent or grandparent. People often do not realise that these paper shares can be worth a lot, and that they cannot be sold as they are. Let me explain what to do.

Why physical shares must be converted

Since April 2019, SEBI has not allowed shares to be transferred in physical form. In plain terms — you cannot sell a paper share certificate on the stock exchange. The only way to unlock its value is to first convert it into electronic form, which is called dematerialisation, or "demat" for short. Until you do that, the shares are stuck, no matter how valuable they are.

The step-by-step process

Here is how the conversion works:

1. Open a demat account with a SEBI-registered broker. If you do not have one, this is the first step.
2. Get the Dematerialisation Request Form (DRF) from your broker.
3. Surrender the physical certificates. You write "Surrendered for Dematerialisation" across the face of each certificate and submit them with the form.
4. The broker sends them to the company's Registrar (RTA), who verifies them with the company.
5. The shares are credited to your demat account. This usually takes about fifteen to thirty working days.

When it gets tricky

The simple case is easy. But old shares often come with complications, and this is where people get stuck and give up:

• The company has changed its name or merged with another. You then have to trace what happened to it over the years and find the current company and its registrar. Companies get bought, split, renamed — it takes some detective work.
• The shareholder has passed away. Then you also need transmission and succession documents before the shares can move.
• The name or signature does not match current records, which happens with very old certificates.
• The company has shut down and the shares may have moved to the IEPF, which is then a separate claim process.

Do not throw old certificates away

This is important. I have seen people almost discard old certificates thinking they are useless paper. Please do not. Even if the company name is unfamiliar, even if it is from the 1980s, get it checked first. Some of these turn out to be worth several lakhs after the company went through mergers and bonus issues over the decades.

The same goes for any dividend warrants or letters you find. They are clues to investments that may still be sitting there waiting to be claimed.

Where to start

Gather all the physical certificates and any related papers in one place. Note down the company names and certificate numbers. If the company still exists and is traceable, the demat route is straightforward. If it has merged or vanished, the trail takes more work but the money is usually still recoverable.

If you have old certificates and you are not sure where to begin, send me a message. I will help you figure out what they are and how to unlock them.

Common Questions

Can I sell physical share certificates directly?

No. Since April 2019 SEBI does not allow transfer of shares in physical form. You must first convert them to electronic (demat) form before you can sell them.

How do I convert physical shares to demat?

Open a demat account, get a Dematerialisation Request Form from your broker, write 'Surrendered for Dematerialisation' on each certificate and submit them. The broker sends them to the company's registrar, and the shares are credited to your demat account in about 15 to 30 working days.

What if the company on my old certificate has merged or changed its name?

You will need to trace what happened to the company over the years and find the current entity and its registrar. It takes more effort, but the value is usually still recoverable.

Should I throw away very old share certificates?

No. Even unfamiliar or decades-old certificates can be worth a lot after mergers and bonus issues. Always get them checked before discarding anything.