How to Convert Physical Shares into Demat

Imagine this: you've decided to invest your hard-earned money in shares, a promising investment for high returns. But as your portfolio grows, managing all those physical share certificates becomes a real challenge. That's where dematerialization swoops in to save the day! Let's dive into what dematerialization is all about and how to convert physical shares into Demat form. Get ready to simplify and streamline your investment journey! 

What is the Dematerialization Process?

Dematerialization is the process of converting physical securities like share certificates into digital format and holding them in a Demat Account. As a shareholder, you must register with a depository to hold your securities in digital form. Whether you invest in Mutual Funds, government securities, or bonds, a registered DP (Depository Participant) is responsible for providing depository facilities under the Depositories Act 1996. Currently, there are two SEBI-registered depositories in India: National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL). 

The main purpose behind dematerialization is to avoid the complex process of trading shares in physical form. By storing and trading your shares in digital form, you no longer need to visit the stock exchange to trade securities. Dematerialization lets you purchase and sell securities online and hold your investments virtually. 

Documents Required to Convert Physical Share to Dematerialized Form

Want to know how to convert a share certificate into a Demat form? The first step is to gather the required documents. These include the following:

• ● Two copies of the DRF (Dematerialization Request Form) 
• ● Original share certificates (Keep a photocopy for reference)
• ● Self-attested copy of PAN card

Procedure for Converting Physical Shares into Demat

1. Open a Demat Account

To convert a physical share certificate into dematerialized form, you must first open a Demat Account with a registered Depository Participant. It is a digital account where you can store and manage all your securities like equity, bonds, mutual funds, shares, etc. It works like a bank savings account where you hold your money unless you withdraw it for use. Linking your Demat account with a Trading Account will help you buy, sell, transfer, and manage securities without handling any physical share certificates. 

Follow these simple steps to open a Demat Account:

1. Visit the Axis Direct official website and click the provided link to begin the online Demat Account opening process.

2. Enter your name, phone number, and verified email address.

3. Verify your mobile number with the OTP sent to you.

4. Provide your PAN card number and date of birth.

5. Fill in your personal details and some basic information about your parents.

6. Share your financial information, income details, and trading experience.

7. Enter your bank details, including the bank name, account number, and IFSC code.

8. Make the required payment using the available payment modes.

9. Upload necessary documents, such as a cancelled cheque, passport-size photo, and address proof.

10. Electronically sign the online Demat Account opening form.

Here you are! You've successfully opened your Demat Account with Axis Direct. Start trading and take advantage of benefits like low brokerage and unlimited trading at just Rs 20 per order.

2. Submitting Dematerialization Request

After opening a Demat Account, the next step is to convert your physical shares into Dematerialized form. 

• ● Fill out the Depository Participant’s DRF (Dematerialization Request Form) with details about the relevant share certificates.
• ● Upon receiving your request, the DP will review and process your request. 
• ● After the approval, the DP will send you a confirmation for successful dematerialization. 
• ● The entire process takes 15-30 days to complete. 

Why should you convert your physical certificate shares into dematerialized form?

Converting physical certificate shares into demat form can offer several advantages. 

Firstly, it eliminates the risk of loss, theft, or damage to physical certificates. 

Secondly, it provides ease of management by storing all shares electronically in a single Demat Account. 

Thirdly, it enables seamless and quick transfer of shares, eliminating the need for physical paperwork. 

Lastly, it allows investors to take advantage of online trading platforms, accessing a wide range of investment opportunities with ease and convenience.

Axis Direct - A one-stop solution for all your investing needs

1. Comprehensive Services: Axis Direct offers a wide range of investment products, including stocks, mutual funds, bonds, IPOs, and more. You can access all these options in one place, making it convenient and efficient for your investment journey.

2. User-Friendly Platform: With an intuitive and easy-to-use platform, Axis Direct ensures a seamless investing experience. Whether you're a beginner or an experienced investor, the platform provides a user-friendly interface, robust tools, and educational resources to support your investment decisions.

3. Research and Insights: Axis Direct provides in-depth research reports, market insights, and expert recommendations to help you make informed investment choices. Stay updated with the latest trends, news, and analysis, empowering you to make confident investment decisions.

4. Value for Money: Axis Direct offers competitive brokerage rates, ensuring you get value for your money. Benefit from cost-effective subscription plans, low brokerage charges, and attractive offers, allowing you to maximize your investment returns.

With Axis Direct, you can enjoy a comprehensive range of investment services, user-friendly technology, valuable insights, and great value for your investments, making it your go-to solution for all your investing needs.

Conclusion

Knowing how to convert physical shares into Demat is essential if you hold your shares in the form of physical certificates. Dematerialization of the share certificates brings you multiple benefits, such as easy management, safety, convenience, and transparency. After converting your shares into Demat, you can manage them anytime, anywhere. Holding shares in digital form also protects them from damage or theft. 

Disclaimer: The process of converting physical shares into a dematerialized form may vary depending on the country and regulations. It is advisable to consult with a professional or follow the guidelines provided by the relevant authorities.