If you are holding old paper share certificates inherited from a parent, bought decades ago, or received in a company IPO long before electronic trading, you can still own them legally — but you cannot sell or transfer them in physical form. Under a SEBI directive effective 1 April 2019, transfer of listed securities is permitted only in dematerialised (electronic) form. To convert physical certificates to demat, you submit a Dematerialisation Request Form (DRF) through your Depository Participant (DP). This guide walks through the full DRF process, charges, timelines, common rejections and special cases as they apply in 2026.
Why converting physical shares to demat is effectively mandatory
SEBI's amendment to the Listing Obligations and Disclosure Requirements (LODR) Regulations, notified in 2018 and effective 1 April 2019, barred Registrars and Transfer Agents (RTAs) from processing transfer requests for listed securities held in physical form. The only exceptions are transmission (transfer to legal heirs on the death of a holder) and transposition (changing the order of names among the same joint holders).
The practical consequence: if your shares are in physical form, you can keep holding them, but the moment you want to sell, gift or transfer them, you must first dematerialise. There is no longer any route to sell paper certificates on the exchange. SEBI's repeated guidance has nudged investors to demat well before any sale need arises, because the conversion itself takes a few weeks and old certificates carry verification risks.
A demat account also removes the risk of theft, loss, forgery and bad delivery that plagued physical certificates, and lets you receive dividends, bonus and rights directly. If you do not yet have a demat account, read our guide on what a demat account is and how it works and how to open a demat account online step by step.
Prerequisite: an active demat account with a DP
You can only dematerialise shares into a demat account, so the first prerequisite is an active demat account with a Depository Participant registered with either CDSL or NSDL. Two important matching conditions:
- The name(s) on the share certificate must match the name(s) on the demat account.
- For jointly held certificates, the order of holders on the certificate must match the order on the demat account. If the order differs, you may need transposition before dematerialisation.
If the certificate is in a single name but your demat account is joint (or vice versa), open or use an account whose holding pattern matches the certificate. Unsure whether to use CDSL or NSDL? See our explainer on the difference between CDSL and NSDL.
The DRF process step by step
Dematerialisation is initiated by you, routed by your DP, and verified by the company's RTA before credit. Here is the full flow.
| Step | What happens | Who does it |
|---|---|---|
| 1. Obtain DRF | Collect the Dematerialisation Request Form from your DP (often downloadable). Use one DRF per ISIN — a separate form for each company. | You / DP |
| 2. Deface certificates | Write “Surrendered for Dematerialisation” across the face of each certificate and sign as per the holding pattern. | You |
| 3. Submit | Hand the defaced certificates plus the signed DRF to your DP and collect an acknowledgement. | You → DP |
| 4. Generate DRN | DP captures the request electronically, generates a Dematerialisation Request Number (DRN) and forwards the physical certificates to the company's RTA / issuer. | DP |
| 5. RTA verification | The RTA verifies the certificates against its register — folio, name, signature, certificate validity. | RTA / Issuer |
| 6. Confirmation | On approval, the RTA confirms to the depository (CDSL/NSDL), the physical certificates are extinguished, and the depository credits your demat account. | RTA → Depository |
| 7. Credit | Shares reflect in your demat holdings, typically in around 2–3 weeks from a clean submission. | Depository / DP |
Important: the depository (CDSL or NSDL) does not levy a dematerialisation charge directly on you — any per-certificate fee is charged by your DP. After credit, verify the holdings via your Consolidated Account Statement (CAS) before treating the conversion as complete.
Documents checklist
| Document | Notes |
|---|---|
| Original share certificate(s) | Defaced with “Surrendered for Dematerialisation” |
| Dematerialisation Request Form (DRF) | One per ISIN; signed by all holders in account order |
| Demat account details | DP ID + Client ID (BO ID) where shares will be credited |
| PAN | Of all holders; should already be linked to the demat account |
| Proof of holding pattern | Only if name order / transposition issues arise |
| Supporting documents | Duplicate-certificate or transmission paperwork in special cases (below) |
Common rejection reasons
RTAs reject a meaningful share of demat requests. The most frequent causes are:
- Name mismatch: the spelling or order of the name on the certificate does not match the demat account (a common issue after marriage-related name changes or initials vs. expanded names).
- Signature mismatch: the signature on the DRF differs from the specimen the RTA holds; old folios may carry decades-old signatures.
- Joint-holder order mismatch: certificate in “A & B” but demat account in “B & A”. Needs transposition first.
- Wrong or incorrect ISIN: the ISIN on the DRF does not correspond to the company / security class.
- Torn, mutilated or old certificates: certificates that are damaged or where distinctive numbers are unreadable.
- Folio not traceable: the folio number on the certificate is not found in the RTA register (often where company name or RTA has changed over the years).
If rejected, the certificates are returned with an objection memo; you cure the defect and re-submit a fresh DRF. To avoid surprises, confirm the current RTA and the company's present name (mergers and rebrandings are common) before defacing certificates.
Special cases
Lost or misplaced certificate
You cannot dematerialise a certificate you no longer hold. You must first apply to the company / RTA for a duplicate certificate — usually requiring an FIR / police complaint, an indemnity bond, an affidavit and (above a threshold) a newspaper advertisement. Only after the duplicate is issued can you file a DRF.
Shares of a deceased holder
If a holder named on the certificate has died, dematerialisation is not the right first step. You must complete transmission — getting the securities transferred to the legal heir(s) or surviving joint holders — before they can be demated. See our detailed guide on transmission of shares after death. Transmission is one of the few transfers SEBI still allows in physical form, but most heirs convert to demat immediately afterwards.
Delisted or suspended company
Shares of a company that has been delisted from the exchanges may still be dematerialised if an active ISIN and RTA exist, but they cannot be traded on the market. If the company is under liquidation or the ISIN is extinguished, dematerialisation may not be possible — check the status with the RTA before incurring effort and cost.
Already in demat, moving between accounts
If your shares are already electronic and you simply want to shift them to a different demat account, that is a transfer, not a dematerialisation. Read how to transfer shares from one demat account to another instead.
Charges and timelines
Dematerialisation charges are levied by the DP, not the depository. Fees vary by broker but commonly fall in the range of around ₹150 to ₹500 per certificate (some DPs charge per certificate, some per request), plus applicable GST and postage / courier for sending certificates to the RTA. Always confirm the exact slab with your DP’s tariff sheet before submitting, since fees differ widely.
A clean, defect-free request is typically credited in around 2 to 3 weeks. Requests with objections, transposition or duplicate-certificate steps can take materially longer. To compare DPs and their charges before you start, browse our demat accounts comparison.
A practical checklist before you submit
- Confirm the company's current name and RTA — many have changed since the certificate was issued.
- Match the holding pattern and name order exactly between certificate and demat account.
- Use one DRF per ISIN; do not club multiple companies on one form.
- Deface the certificates with “Surrendered for Dematerialisation” and sign correctly — only after confirming the request is valid.
- Keep the DP’s acknowledgement and DRN safe to track the request.
- Verify the credit in your CAS after roughly three weeks.
Once your old certificates sit safely in your demat account, you can finally sell, gift or pledge them like any other electronic holding — and never worry about misplaced paper again.
Frequently Asked Questions
Can I still sell physical share certificates in India in 2026?
No. Since SEBI's directive effective 1 April 2019, transfer of listed securities in physical form is not permitted (except transmission and transposition). You can legally hold paper certificates, but to sell or transfer them you must first convert them to demat using a DRF.
How long does it take to convert physical shares to demat?
A clean, defect-free dematerialisation request is typically credited to your demat account in around 2 to 3 weeks. Requests that hit objections, require transposition, or need a duplicate certificate or transmission first can take significantly longer.
How much does dematerialisation cost?
The depository (CDSL or NSDL) does not charge you directly. Your Depository Participant levies the fee, commonly in the region of ₹150 to ₹500 per certificate, plus GST and postage. Exact charges vary by DP, so check their tariff sheet before submitting.
Do I need a separate DRF for each company?
Yes. You must submit one DRF per ISIN, meaning a separate form for each company or security class. You cannot club shares of multiple companies on a single dematerialisation request form.
What if I have lost the physical share certificate?
You cannot dematerialise a certificate you do not hold. You must first apply to the company or its RTA for a duplicate certificate — usually involving an FIR, indemnity bond, affidavit and sometimes a newspaper advertisement — and only then file the DRF for the duplicate.
The shares are in my deceased father's name. Can I dematerialise them directly?
No. When a holder has died, you must first complete transmission to transfer the securities to the legal heir(s) or surviving joint holders. Transmission is one of the few transfers still allowed in physical form; after it is done, the heir can dematerialise the shares with a DRF.