Introduction: Dematerialization of physical shares is a crucial process for shareholders, especially when shares haven’t been transferred to an IEPF Account. This article outlines the necessary steps, forms, and additional measures involved in dematerializing physical shares.
In cases where the shareholder is alive and physical shares have not been transferred into an IEPF Account by the Company/RTA:
DEMAT of Physical Shares Certificate (Share Certificate Available): First of all, we need to update KYC with RTA (Registrar and Transfer Agent). There are many forms, but I am mentioning only some requisite forms here.
| Form Name | Usage |
| ISR-1 | This form is useful for update of KYC viz. PAN/Bank Details/Signature /Contact Details and address. |
| ISR-2 | This form required to be attested by banker. If selected to update Signature/ or Bank Update under ISR-1 |
| ISR-3 | If share holder no want to nominate. This Form for Opting-out of Nomination by security holder. |
| ISR-4 | This form is very useful case-to-case. This form mandatory if Physical holder want to convert security into DEMAT Form, for requesting Duplicate share certificate, Transmission of shares, claim of shares from unclaimed suspension account and many more. |
| ISR-13 | Nomination form. If any share holder wants to nominate the shares, he/she should must file this form. |
After filling the mandatory details in this form, the shareholder must attach required documents along with the physical share certificate with the form and submit it to the respective RTA of the Company. After checking all documents, RTA will update the contact details and do the accordance as requested under the form.
After due process, RTA will issue a Letter of Confirmation in exchange for physical shares. RTA will simultaneously update the details viz. contact detail/bank detail/address with their database.
Now the shareholder will receive the “Letter of Confirmation” (Validity of the same may be 120 days from the date of issue). The shareholder must submit the Letter of Confirmation and a request letter to convert shares from physical to DEMAT form to his/her DEMAT service provider.
This process will take approximately 45-60 days assuming all documents are complete and no queries are raised from RTA regarding documents/form.
DEMAT of Physical shares (Share Certificate Missing) –
We need to follow all processes mentioned above with following additional measures –
- Need to submit an FIR copy regarding the loss of the original share certificate.
- Mention “issuance of duplicate share certificate” under ISR-4.
- An Affidavit and bond to be executed in favor of the company. It also depends on the value of shares.
- Some companies also require surety other than a relative of the shareholder.
Conclusion: Dematerializing physical shares is a meticulous process that involves updating KYC details, submitting requisite forms, and adhering to specific timelines. In cases of missing share certificates, additional documentation and legal procedures are required. By following the outlined steps and measures, shareholders can efficiently convert their physical shares into DEMAT form, ensuring ease of transactions and compliance with regulatory requirements.
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