can i still sell physical share certificates

Not directly. Since transfers of shares in physical form were stopped, a paper certificate cannot be sold or transferred until it is converted to electronic form in a demat account. The certificate still represents genuine ownership — it simply cannot change hands on the exchange until it is dematerialised.

how to convert physical shares to demat

Open a demat account, then submit a Demat Request Form to your depository participant along with the original certificates, defaced as instructed. The DP forwards them to the company’s registrar, who verifies them and, once satisfied, extinguishes the paper and credits the equivalent shares to your demat account. The process commonly takes a few weeks.

the process of converting physical shares to electronic form is called

Dematerialisation, usually shortened to demat. It is the conversion of a paper share certificate into an electronic holding recorded with a depository — NSDL or CDSL — in your own name. The reverse, converting electronic holdings back to paper, is rematerialisation, but it is rarely done and serves little purpose today.

what happens to shares that are never claimed

Shares whose dividends have gone unclaimed for a long continuous period can be transferred by the company to the Investor Education and Protection Fund, the IEPF, along with the unclaimed dividends. They are not lost — they can be reclaimed from the IEPF through a defined process — but recovery is slower and more involved than simply holding them, which is why dormant certificates are worth acting on.

i found old share certificates in my father name what do i do

If the holder has died, the shares pass by transmission rather than a normal transfer, which needs succession documents such as a will, a succession certificate or a legal heir certificate depending on the case, alongside dematerialisation. Start by identifying the company’s registrar, since it is the registrar that processes both the transmission and the demat request. Getting the documentation right at the outset avoids repeated rejections.

Turning old physical share certificates into demat

Many Indian families hold wealth they cannot use: a folder of old share certificates in a locker, bought decades ago or inherited, in a company that may since have grown many times over. As paper, those certificates are now nearly inert — they prove ownership but cannot be sold. Dematerialising them is the step that turns a keepsake back into an asset.

Think of it like this

Purani FD ki receipt

A handwritten deposit receipt from an old bank branch still represents your money, but no ATM will read it. You have to take it to the bank, have it verified, and have the balance moved into a modern account before you can actually use the money.

In the market

A physical share certificate is that old receipt. Genuine, but unreadable by the market. Dematerialisation is the verification that moves the value into an account the exchange can actually work with.

Why paper stopped working

To curb forgery, disputes and lost certificates, the market moved decisively to electronic holdings. Transfer of shares in physical form was stopped, and later, service requests on physical holdings were steered towards demat as well. The certificate you hold is still valid proof of ownership — but the moment you want to sell, transfer, gift or pass it on, it has to be electronic first.

The conversion, step by step

From locker to demat account

1
Open a demat account
If you do not already have one, open a demat account in the exact name in which the certificates are held. Name mismatches are a common cause of rejection.
2
Fill a Demat Request Form
Ask your depository participant for a Demat Request Form (DRF), one per company, and deface the certificates as instructed — usually writing “Surrendered for dematerialisation” across the face.
3
Submit certificates to the DP
Hand the DRF and the original certificates to your DP. They generate a request and forward everything to the company’s registrar and transfer agent.
4
The registrar verifies and credits
The RTA checks the certificates against its records. Once satisfied, the paper is extinguished and the equivalent shares are credited to your demat, commonly within a few weeks.

The clock on forgotten shares

There is a reason not to leave old certificates untouched. When the dividends on a holding go unclaimed for a long continuous period, the company is required to transfer both the unclaimed dividends and the underlying shares to the Investor Education and Protection Fund — the IEPF. Nothing is confiscated: the shares can be reclaimed. But recovery from the IEPF is a slower, more documentation-heavy process than simply holding shares would have been, and it is entirely avoidable by claiming what is yours in time.

Check yourself

You inherit physical share certificates and want to sell the shares. What must happen first?

What to remember

Physical share certificates can no longer be sold or transferred until they are dematerialised.
A certificate is illiquid, not worthless — the ownership is real, the usability is not.
Convert via a Demat Request Form submitted to your DP, verified by the company’s registrar.
Identify the correct registrar and transfer agent first; it processes both demat and transmission.
Long-unclaimed shares and dividends move to the IEPF and must then be reclaimed — act before that clock runs.

Finished this lesson?

Mark it done to track your progress through the curriculum.

Common questions

Short, direct answers to what people ask about this topic.

can i still sell physical share certificates: Not directly. Since transfers of shares in physical form were stopped, a paper certificate cannot be sold or transferred until it is converted to electronic form in a demat account. The certificate still represents genuine ownership — it simply cannot change hands on the exchange until it is dematerialised.
how to convert physical shares to demat: Open a demat account, then submit a Demat Request Form to your depository participant along with the original certificates, defaced as instructed. The DP forwards them to the company’s registrar, who verifies them and, once satisfied, extinguishes the paper and credits the equivalent shares to your demat account. The process commonly takes a few weeks.
the process of converting physical shares to electronic form is called: Dematerialisation, usually shortened to demat. It is the conversion of a paper share certificate into an electronic holding recorded with a depository — NSDL or CDSL — in your own name. The reverse, converting electronic holdings back to paper, is rematerialisation, but it is rarely done and serves little purpose today.
what happens to shares that are never claimed: Shares whose dividends have gone unclaimed for a long continuous period can be transferred by the company to the Investor Education and Protection Fund, the IEPF, along with the unclaimed dividends. They are not lost — they can be reclaimed from the IEPF through a defined process — but recovery is slower and more involved than simply holding them, which is why dormant certificates are worth acting on.
i found old share certificates in my father name what do i do: If the holder has died, the shares pass by transmission rather than a normal transfer, which needs succession documents such as a will, a succession certificate or a legal heir certificate depending on the case, alongside dematerialisation. Start by identifying the company’s registrar, since it is the registrar that processes both the transmission and the demat request. Getting the documentation right at the outset avoids repeated rejections.