Learn how to Convert Physical Shares to Demat Online

Learn how to Convert Physical Shares to Demat Online

The investment sector has witnessed significant technological advancements, and one notable transformation is the transition from physical share certificates to Dematerialised form. Demat accounts have revolutionised share trading by offering a secure and efficient investment management method.


The Demat account, characterised by its paperless approach, offers investors a dependable and effective means of safeguarding their physical shares. The advent of Demat accounts facilitates the transformation of your shares into electronic format, revolutionising the management of your investment portfolio. But the question now arises: How can you convert your physical shares to demat form online? Read this post to learn more about the procedure.

What is a Demat Account? 

A Demat account, or “Dematerialised account,” is an account that allows you to manage and hold your securities, such as bonds, stocks, and mutual funds, in an electronic or digital format rather than in physical paper certificates. 


It serves as a digital repository for your investments, making tracking and management of your holdings in the stock market and other financial instruments convenient. 

What is the Process of Dematerialisation?

In the dematerialisation process, you are required to open a Demat account with a Depository Participant (DP). You must submit your physical share certificates to the DP and other required documents to do so.


The DP then transfers your request to the depository (either NSDL or CDSL), which undertakes to change your physical holdings into an electronic format. After the successful completion of this step, your electronic securities are then deposited into your Demat account. 

What are the Advantages of Dematerialisation?

Dematerialisation has various benefits that make handling your investments easier and more effective. Some of them are:

1. Wider Investment Options

You can invest in a variety of financial assets, such as stocks, bonds, mutual funds, and government securities.

2. Streamlines Transactions 

You can capitalise on different corporate actions like dividends, bonus issues, and rights issue, reducing the risk of missing out on these benefits.

3. Accessibility 

With dematerialisation, you can check on your investments anytime using the internet. You do not have to wait for paper statements to arrive. 

4. Cost-Efficiency 

Going digital saves money because there’s no need to print, store, or send physical papers. This also helps the environment as it reduces the usage of paper. 

Step-by-Step Process to Convert Your Physical Shares to Demat

You must follow a simple process to convert physical shares to dematerialised form. The steps are as follows:

Step 1: Opening a Demat Account

The pivotal first step is establishing a Demat account, which is essential for holding your shares electronically. The steps are as follows:

1. Choose a Registered Depository Participant (DP)

Connect with a SEBI-registered Depository Participant.

2. Complete the Account Opening Process

Fill out the form provided by the chosen Depository Participant.

3. Submit KYC Documents

Upload your KYC documents alongside the completed application to the Depository Participant.

4. Sign the Agreement

Enter into an agreement outlining rights and responsibilities with the DP/bank.

5. Receive Demat Account Number

Obtain a Demat account number, enabling you to trade in the stock market using your newly opened Demat account.

Step 2: Converting Physical Shares to Dematerialised Form

Effortlessly transform your physical shares into a dematerialised format by following these steps:

1. Request DRF Form

Request a Dematerialisation Request Form (DRF) from your DP.

2. Complete DRF Form

Fill out the DRF form and submit it to your Depository Participant along with your share certificates, with each certificate bearing ‘Surrendered for Dematerialisation’.

3. Verification and Conversion

Upon successful verification of your DRF and share certificates, you will get an email within approximately two to three weeks. Your shares will be changed to a dematerialised form and added to your Demat account.

Step 3: Disposing of Physical Share Certificates

With your shares securely in dematerialised form, dispose of your physical share certificates, as they are no longer necessary. Now, you can promptly trade your physical shares to demat. 


Converting physical shares to demat form has transformed how you manage investments in the digital age. It offers unparalleled convenience, reduces risks associated with physical certificates, and opens up a world of seamless trading and portfolio management possibilities. As financial markets evolve, embracing dematerialisation becomes not just a choice but a necessity for modern investors.

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