Want to convert physical shares to Demat? Learn about the process and its advantages

 

Do you still own any physical certificates of share? If you do, you should convert them into electronic format. The process of converting the physical share certificate into its electronic form is called the dematerialization of the share. If you trade every now and then on the stock market, you will know that these days, you get to hold the electronic form of shares only, and to hold them you need a proper Demat account. It can be a time-consuming process to transfer the physical shares to a Demat account. To help you in this task, many private financial solution companies are coming forward. They will assist the shareholders in the recovery of investment and debtor. 

What are the advantages of dematerialized shares?

·        Safety- The electronic form of shares is pretty reliable. Here, you don't have to worry about any fake document or forged physical share certificate. So, the electronic record of shares presented in your online Demat account is quite genuine and authentic. Here, you don't have to be bothered about the theft or any unethical access of the dematerialized shares. Your online Demat account is password protected all the time. So, clearly, the dematerialized shares are subject to enhanced security. 

·        Convenience- With the advent of dematerialized shares, the shareholders will not have to worry about damaged physical share certificates or about losing them completely. The online Demat accounts have made it easier to store and maintain the shares. So, the online Demat account is pretty helpful for modern shareholders. 

·        Accessibility- In the case of dematerialized shares, you just need a proper internet connection to access the electronic form of shares. You can access these dematerialized shares from anywhere at any point of time. 

How can you convert the physical shares to Demat?

Let's take a look at the process of converting the physical share certificates to online dematerialized shares. 

·        At first, you will have to open a Demat account. For this step, you can count on various broking agencies or banks. You must submit a scanned copy of your documents for the opening process of your online Demat account.

·        Once, the Demat account is opened, you will have to place a request to convert the physical share certificates to dematerialized shares. You will have to fill up a dematerialization request form. The shareholders will have to wait for a while till their dematerialization request is approved. 

·        After the approval of the share transfer request, the registrar and share transfer agent will destroy all your physical share certificates at first. Next, they will credit your online Demat account with a relevant number of shares. 

The process of dematerialization of physical shares is undoubtedly a lengthy process. But, it doesn't involve much intervention on the part of the user. So, the shareholders should get in touch with such a financial solution agency that will assist them to recover the balance from their physical share certificates. During the process of dematerialization, the shareholder is required to maintain thorough communication with the recovery company. In return for their recovery service, the financial solution will ask for a very negligible amount of money as their service charge. These organizations can help you with the IEPF refund claim as well.