Do you still have colorful paper share certificates from companies like Reliance, Tata Steel, or ITC in your locker? While they look valuable (and they are!), they are essentially frozen assets in today's digital market.

The SEBI Mandate

The Securities and Exchange Board of India (SEBI) has stopped the transfer of physical shares. This means:

  • You cannot sell physical shares on the stock exchange.
  • You cannot transfer them to anyone (except via transmission/inheritance) unless they are dematerialized.
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Risks of Physical Certificates

Beyond the legal restrictions, physical certificates carry inherent risks:

  • Loss or Theft: Paper can be easily lost, stolen, or damaged by moisture/termites.
  • Fraud: Physical certificates can be forged.
  • Signature Mismatch: Your signature from 1990 likely doesn't match your signature today, causing rejection of any service request.

How to Convert to Demat?

The process involves:

  1. Opening a Demat Account with a Depository Participant (DP).
  2. Submitting the Dematerialization Request Form (DRF) along with original certificates to your DP.
  3. The DP sends these to the Company/RTA for verification.
  4. Once verified, the physical records are cancelled, and electronic shares are credited to your account.
Have Old Certificates? Ekvam Associates can help check if they are still valid, coordinate the signature verification, and manage the demat process end-to-end.