Dematerialization of Old Physical Share Certificates – Latest Updates (2025)

Investors holding physical share certificates now have a special opportunity to convert them into demat form under a regulatory relaxation recently announced. This move aims to help those who earlier faced rejection or delay in the transfer of shares. Here’s what you need to know if you or your clients are still holding old physical shares.

SEBI’s Special Six‐Month Window (July 2025 – January 2026)

The Securities and Exchange Board of India (SEBI) has introduced a six-month special window starting from July 7, 2025, to January 6, 2026, for investors to re-lodge physical share transfer requests that were originally submitted before April 1, 2019 but got rejected or remained pending.

As per the guidelines, any such shares must be converted to dematerialized (demat) form during this period. All registrars, transfer agents, and listed companies are instructed to form dedicated teams to handle such cases and to actively disseminate awareness through periodic public notices.

Process for Dematerialization of Physical Shares

If you are holding physical share certificates, follow these steps to convert them into demat form:

1. Open a demat account with a SEBI-registered Depository Participant (DP), such as a bank or stockbroker.

2. Fill out the Dematerialization Request Form (DRF) and submit it along with the original physical share certificates. The certificates should be marked as “Surrendered for Dematerialisation.”

3. Submit required documents, including:

   
   

   • PAN card

   • Address proof

   • Original share certificates

   • DRF

   • Name change affidavit or gazette notification (if applicable)

   • Documentation for joint holders (if any)

   
   

4. The Depository Participant will forward your documents to the Registrar and Transfer Agent (RTA) of the company.

5. Upon successful verification, the shares will be credited to your demat account, typically within 2 to 4 weeks.

Why It’s Important to Convert Physical Shares

Holding shares in physical form is no longer a viable option for trading or transferring. SEBI regulations mandate that all shares must be in demat form for valid transfers or transactions. Moreover, if physical shares remain unclaimed for more than 7 years, they may be transferred to the Investor Education and Protection Fund (IEPF), making recovery more complicated.

Additionally, converting to demat helps investors easily access and manage their holdings, receive dividends directly to their bank account, and avoid risks such as theft, loss, or damage to physical certificates.

Action Plan for Shareholders

Step

What to Do

1️⃣

Check eligibility – Ensure that the transfer deed was lodged before April 1, 2019.

2️⃣

Open a demat account – If you don’t have one, open it with any SEBI-registered DP.

3️⃣

Gather documents – DRF, physical share certificates, PAN, address proof, etc.

4️⃣

Submit your request – Initiate the demat process through your DP.

5️⃣

Track the status – The process usually takes 2–4 weeks after submission.

Need Help with Old Shares?

If you’re unsure about how to proceed or require assistance with filling forms, affidavits for name mismatches, or joint-holder cases, consider reaching out to a financial consultant or advisor specializing in demat services. Acting within the current window can help safeguard your investments and unlock the value of long-forgotten assets.