How to convert physical share certificates into demat form?

How Does Dematerialization Work?

You might think dematerialization is complicated, but it’s actually quite straightforward.
Let’s break it down step-by-step:

Step 1: Open a Demat Account

First, you need to open a Demat account with a Depository Participant (DP).
DPs can be banks, brokers, or fintech companies.

Popular DPs include names like Ventura, Zerodha, Upstox, and more.

Opening a Demat account is like opening a bank account, but instead of holding money, it holds your investments.

Step 2: Submit Physical Certificates

If you already own physical share certificates, you’ll need to submit them to your DP along with a Dematerialization Request Form (DRF).

This form is crucial because it signals that you want to convert your physical shares to digital format.

Step 3: Verification Process

After submission, your DP sends the physical certificates to the company that issued them, as well as to the depository (NSDL or CDSL), for verification.

They verify the authenticity of the certificates to ensure everything is correct.

Step 4: Digital Conversion

Once verification is complete, the physical share certificates are destroyed to avoid duplication.
In their place, the equivalent number of electronic shares are credited to your Demat account.