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How to Convert Physical Shares to Demat - Step by Step Guide....... The Securities and Exchange Board of India (SEBI) has been on a mission of insisting the physical share certificate holders to convert their holding into digital mode. By doing so the holders of share certificates will be able to transact quicker. Digitalization or dematerialisation of shares into the electronic form will also remove any type of fraud that was possible in the case of a physical share certificate. As per the regulation by SEBI, now you can only trade and invest in shares through a demat account. This has made the process of transacting in the stock market easier, simple, faster and more reliable. In this article, you will learn how to convert physical shareholding into electronic or dematerialised form. Process of Converting Physical Shares to Demat Account............. · The primary step for converting physical share certificate holding into electronic form is to open a demat account with Depository Participant (DP). The depository participant acts as a middleman between the shareholder and depository. You can even open a demat account with a bank. You must ensure that the name in the physical share certificate and demat account is similar. · After opening the demat account fill the Dematerialisation Request Form (DRF) and submit it to your DP along with the physical share certificates. · A single DRF can suffice four share certificates. In case you hold more than four physical share certificates, you must file a separate set of DRFs and submit the share certificates to the DP. ·The DP will review the details submitted and give you a DRN (Dematerialisation Request Number) as an acknowledgment for processing the request. ·The DP will send your request for converting physical share certificates into demat form to the Registrar and Share Transfer Agent (RTA) of the company whose physical shares are held by you. ·Once the process of converting physical shares into electronic form is completed, the physical share certificates are destroyed. ·The dematerialised shares will get credited into your demat account. Now you can easily transfer them to another account or sell them in the market with ease. By following the above-mentioned process you can easily convert your physical share certificates into demat form. This process takes around 2-3 weeks to complete. The cost of converting physical shares into electronic form is very nominal. However, before opening the demat account with the DP, you may enquire about the different types of charges like brokerage, annual maintenance cost, etc. You may consider opening a demat account with Indira Securities. We are one of the fastest growing stock brokers in India and offer a wide range of broking services at affordable rates.