Physical to Demat Shares Conversion Process Explained in Simple Terms
With Indian capital markets becoming fully digital, holding shares in physical form is no longer practical or even permitted for trading. SEBI has mandated the conversion of physical share certificates into Demat form to ensure transparency, safety, and ease of transactions. If you still hold old paper share certificates, converting them into Demat is essential. This blog explains the physical to Demat shares conversion process in simple terms , helping investors understand each step clearly. What Are Physical Shares? Physical shares are paper-based share certificates issued by companies before the Demat system was introduced. These certificates mention shareholder details, certificate numbers, folio numbers, and the number of shares held. While valid, physical shares are vulnerable to loss, damage, forgery, and lengthy transfer procedures. What Is Demat Form? Demat (Dematerialized) shares are electronic holdings stored in a Demat account maintained by a Depository Particip...