If you don’t have a demat account and prefer to hold physical shares for the sake of investment, you might have to re-think your decision. The 2019 mandate of the market regulator Security and Exchange Board of India (SEBI) states that only the shares available in electronic format (i.e., dematerialised form) can be sold or transferred in the stock market.
Published on 07 January 2023
OPEN A FREE* DEMAT AND TRADING ACCOUNT
IN 15 MINS*
While this does not mean that you cannot hold physical shares, it does mean that selling and transferring them would not be possible without the investor holding a demat account online. This step was essentially undertaken to make the process of buying, selling, and transferring more convenient. Moreover, there are several benefits of having a demat account online, which make it a better idea to transfer your physical shares online in India. Also Read: Steps of Purchasing and Selling of Shares Through Demat Account
To trade your physical shares, they will first have to be converted into an electronic format and be stored in your demat account in India. The process of transferring your physical shares online in India is called dematerialisation. It is important to bear in mind that only the shares that are active and trading on the stock exchange can be converted, and so if your shares have been delisted, they are now unfortunately worth nothing. Also Read: How to Know Your Demat Account Number?
Prior to converting your physical shares, you will have to have a demat account with a depository participant.
How to Convert Physical Shares to a Demat?
Prior to transferring your physical shares online in India, you will first have to open a demat account with a depository participant (DP). Several DPs offer free services to open a demat account in India. Here are the general steps to open a demat account online:
Step 1: On the website of your chosen DP, select the option of opening a demat and trading account
Step 2: The screen will then ask you to fill out an application form to open your demat account in India.
Step 3: Once you will the form, you will be asked to upload the scanned copies for KYC. This includes your proof of income, proof of identity, and proof of address
Step 4: You will have to sign an agreement with your DP, which includes the responsibilities of both parties. It is recommended to read the form carefully.
Step 5: Finally, your application will be processed by the DP, and upon successful approval, you will receive your user ID and password to access your trading account.
Benefits of Transferring Physical Shares to a Demat Account
Several benefits come with having a demat account online. Some of the most important ones include:
Better Safety: When you transfer your physical shares online in India, you can rest assured that your shares will not be damaged or stolen. It also gets rid of the possibility that you have counterfeit shares as a demat account in India is maintained by two reliable depositories, namely the NSDL and the CDSL.
Enhanced Accessibility: With a demat account online, you can invest, store, and trade your stocks anytime and anywhere. You will only require the internet to access your demat account online.
More Convenient: Aside from the fact that a demat account eliminates the possibility of loss or damage of shares, it also reduces the hassle of unnecessary paperwork, and that saves a lot of the account holder’s time.
Saves Time: An important advantage of having a demat account online is that you don’t have to make frequent bank visits to trade. Even the statements of the demat account are shared directly with the investor.
Final Words
Once you complete transferring your physical shares online in India and opening your demat account, you can then generate the request for dematerialisation of physical shares. For this, your DP will ask you to fill the Dematerialisation Request Form (DRF) that you will be asked to sign and share along with your physical shares. Also Read: What Is Dematerialisation of Securities?
After the dematerialisation form is processed, your physical shares are destroyed, and your demat account gets credited with the electronic copy of your shares.
Team Espresso
We care that you succeed
Bringing readers the latest happenings from the world of Trading and Investments specifically and Finance in general.
In the past, when you bought a company’s shares you were provided physical shares certificates from the stock exchange bearing your name. A lot of the record-keeping was also done in hard copies, and every time a buy or sell transaction was done, more paperwork ensued.
If you wish to trade in the stock market, you need a demat account. This type of account allows investors to hold their shares of stocks and other securities with the help of a custodian bank instead of having them physically.
Dematerialisation of securities can be a great method to keep your physical securities safe and convenient. Apart from this there are several other benefits of dematerialising your securities. Here is everything you need to know.
After 2019 SEBI has mandated that you can only trade and invest in shares that are in the dematerialised form. This was done to ease the process of buying, transferring, and selling company shares.
Just as a bank account stores your money, your demat account holds your shares and securities from the capital market. It can also be used to hold a variety of other financial commodities such as mutual funds, exchange-traded funds, bonds, etc.
The process of transferring your physical shares to demat is two-fold. To dematerialise your shares, you will first have to open a demat account with your chosen depository participant. Once this is done, you simply have to fill a Dematerialisation Request Form (DRF) and share it with your DP along with your physical shares. Upon the process of your request, your physical shares will be destroyed, and your account will be credited with the electronic shares.
Related Articles
What is a Demat Account?
In the past, when you bought a company’s shares you were provided physical shares certificates from the stock exchange bearing your name. A lot of the record-keeping was also done in hard copies, and every time a buy or sell transaction was done, more paperwork ensued.
If you wish to trade in the stock market, you need a demat account. This type of account allows investors to hold their shares of stocks and other securities with the help of a custodian bank instead of having them physically.
Dematerialisation of securities can be a great method to keep your physical securities safe and convenient. Apart from this there are several other benefits of dematerialising your securities. Here is everything you need to know.
After 2019 SEBI has mandated that you can only trade and invest in shares that are in the dematerialised form. This was done to ease the process of buying, transferring, and selling company shares.
Just as a bank account stores your money, your demat account holds your shares and securities from the capital market. It can also be used to hold a variety of other financial commodities such as mutual funds, exchange-traded funds, bonds, etc.
The process of transferring your physical shares to demat is two-fold. To dematerialise your shares, you will first have to open a demat account with your chosen depository participant. Once this is done, you simply have to fill a Dematerialisation Request Form (DRF) and share it with your DP along with your physical shares. Upon the process of your request, your physical shares will be destroyed, and your account will be credited with the electronic shares.
Sharekhan Comtrade Private Limited (TM) operates the web site accessible from the URL www.myespresso.com (the “web site”').
Sharekhan Comtrade Private Limited is committed to protecting your privacy and utilising technology that gives you the most powerful, safe, online experience that you can get anywhere else.
Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.
Sharekhan Comtrade Private Limited requests the minimum information it believes necessary to achieve this goal.
The following discloses Sharekhan Comtrade Private Limited's information gathering and dissemination practices for the Web Site:
System Data:
Sharekhan Comtrade Private Limited uses your IP address to help diagnose problems with our server and to administer the web site. Your IP address is used to identify you and your shopping cart and to gather broad demographic information.
Registration Data:
The Web Site's registration form may require users to give us contact information (like their name, phone number and e-mail address), unique identifiers (like their PAN Number) and demographic information (like their pin code, age or income level). The Web Site uses customer contact information from the registration form to send the users information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Comtrade Private Limited's partners. The customer's contact information is also used to contact the visitor when necessary. Unique identifiers (such as PAN numbers) are collected to verify the user's identity. Demographic and profile data is also collected at the Web Site. We use this data to tailor the visitor's experience at the Web Site, showing them contents that we think they might be interested in, and displaying the contents according to their preferences. This information is shared with advertisers on an aggregate basis.
Links and Co-Branded Sites:
This site contains links to other Web Sites which are not necessarily been screened or reviewed by www.myespresso.com. Sharekhan Comtrade Private Limited is neither responsible for the privacy practices or the contents of such Web Sites nor shall be held answerable for the inaccurate, inappropriate or offensive data, material, information, products and services that may be viewed on those sites.
Sharekhan Comtrade Private Limited may operate a number of co-branded sites. Policies regarding information collection and sharing may differ on some of these co-branded sites. If you have any particular questions, you should check the privacy statement that appears on each co-branded site.
Order Forms:
The Web Site uses an order form for customers to request information, products and services. The Web Site collects visitors' contact information (like their mobile number or e-mail address), unique identifiers (like their PAN number) financial information (like their account or credit card numbers) and demographic information (like their pin code, age or income level). Contact information from the order form is used to send orders, information about Sharekhan Comtrade Private Limited, and promotional material from some of Sharekhan Comtrade Private Limited's partners to the visitors of the Web Site. The visitor's contact information is also used to get in touch with the visitor when necessary. Financial information that is collected is used to check the users' qualifications and bill the user for products and services. Unique identifiers (such as PAN numbers) are collected from Web Site visitors to verify the user's identity.
Surveys and Contests:
The Web Site's online surveys ask visitors for contact information (like their mobile number or e-mail address) and demographic information (like their pin code, gender, age or income level). The Web Site uses contact data from its surveys to send the user information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Ltd.'s partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below. Demographic and profile data is also collected at the Web Site. The Web Site use this data to tailor its visitor's experience at the Web Site, showing them content that it thinks they might be interested in, and displaying the content according to their preferences. This information is shared with advertisers on an aggregate basis.
Sharekhan Comtrade Private Ltd run contests on the Web Site in which we ask visitors for contact information (like their e-mail address). Sharekhan Comtrade Private Limited uses contact data from its contests to send users information about Sharekhan Comtrade Private Ltd. and promotional material from some of our partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below.
Third-Party Advertisement Servers:
Sharekhan Comtrade Private Limited engages the services of an outside advertisement company to display advertisement on the Web Site. These advertisements may contain cookies. While Sharekhan Comtrade Private Limited uses cookies in other parts of the Web Site, cookies received with banner advertisements are collected by the Advertisement company, and Sharekhan Comtrade Private Limited does not have access to this information.
Protection of your Data and Information:
The privacy and protection of your data and information provided to us is of vital importance. Sharekhan Comtrade Private Limited shall ensure to safeguard the security and confidentiality of any information you share with us. Any personally identifiable information of the customers obtained by us shall not be used or shared other than for the purposes to which the customers consents. However security and confidentiality of information cannot be guaranteed cent percent. Hence despite our utmost efforts to protect your personal information, Sharekhan Comtrade Private Limited and www.myespresso.com cannot warrant the security of any information you transmit to us through our online services. Such transmission of your personal information is done at your own risk.
Disclosure of Customer Information :
Sharekhan Comtrade Private Limited and www.myespresso.com shall not deliberately disclose customer's personally identifiable information to any unauthorized third person, save and except where such information shall be disclosed in good faith and for the purpose of law for the time being in force or to protect the rights and property of Sharekhan Comtrade Private Limited and www.myespresso.com.
Public Forums :
The Web Sites makes chat rooms, forums, message boards and/or news groups available to its users. Please remember that any information that is disclosed in these areas becomes public information and you should exercise caution when deciding to disclose your personal information.
Supplemental Information :
The Web Site supplements the information that you provide with information that is received from third parties.
The Web Site DOES NOT entice by the prospect of a special game, prize or other activity, to divulge more information than is needed to participate in the activity.
Further to the above, in light of the recently notified Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. (Hereinafter referred to as the Rules)
The following shall be deemed to be sensitive information :
Password;
Financial information such as Bank account or credit card or debit card or other payment instrument details;
Physical, physiological and mental health condition;
Sexual orientation;
Medical records and history;
Biometric information;
Any detail relating to the above clauses as provided to body corporate for providing service; and
Any of the information received under above clauses by body corporate for processing, stored or processed under lawful contract or otherwise:
provided that, any information that is freely available or accessible in public domain or furnished under the Right to Information Act, 2005 or any other law for the time being in force shall not be regarded as sensitive personal data or information for the purposes of Rules.
Collection of Information:
Compliance with KYC guidelines as per SEBI / Exchanges / Or any other Act, law or regulation requiring the same and any internal KYC guidelines formulated by Sharekhan Comtrade Private Limited.
In order to provide enhanced trading experience to the client.
In order to provide any further information to be provided to regulators.
Such information may be collected in a manner that the client is always aware of the collection and purported usage of the same. The client shall have an option to withdraw consent to share the information. However such intimation shall be required in writing. Such intimation shall only be taken into account from the date on which the same is received. Sharekhan Comtrade Private Limited may choose to stop services to such a client in case such intimation is received. Such information shall only be used for the purpose it is collected.
Clients would be allowed an option not to disclose any information to be collected, provided the same is in compliance with regulatory requirements.
Disclosure of information:
Disclosure of sensitive information would be as per the terms agreed by the clients. For any change in such terms, the clients would be informed.
Provided no consent may be required in case the same is being shared as per compliance guidelines or as required by regulators.
Any information being disclosed to third parties would be in accordance with the Rules and would be done provided such third party has the same level of compliance guidelines as Sharekhan Comtrade Private Limited.
Sharekhan Comtrade Private Limited shall allow clients to review their personal information and the same shall be allowed to be edited provided exchange guidelines relevant to the same are followed.
Sharekhan Comtrade Private Limited shall maintain reasonable security practices and procedures and maintain a comprehensive documented information security programme. In the event of an information security breach, Sharekhan Comtrade Private Limited or a person on its behalf shall be required to demonstrate as and when called upon to do so by the agency mandated under the law, that there have implemented security control measures as per their documented information security programme and information security policies and information security policies that contain managerial, technical, operational and physical security control measures that are commensurate with the information assets being protected with the nature of business.
KYC Languages
Download Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don't's) in Vernacular Language :
Note: "This document is a translated version of the client registration documents in English and is being provided in vernacular language to facilitate better understanding by the investors. In case of any ambiguity, the contents of the English version would prevail."
NDNCR Terms & Conditions
By accepting the Terms & Conditions, you authorise Espresso, its representatives and agents to provide information about various products, offers and services provided by Espresso through any mode, including telephone calls, SMSes, emails, letters and any other mode of communication. You also confirm that laws in relation to unsolicited communication referred in "National Do Not Call Registry" as laid down by "Telecom Regulatory Authority of India" will not be applicable for such information/communication.
Filing Complaints on SEBI Complaint Redress System (SCORES) - Easy and Quick
Register on the SCORES portal
Mandatory details for filing complaints on SCORES:
Name
PAN
Address
Mobile Number
Email ID
Benefits:
Effective communication
Speedy redressal of grievances
You can file complaints on SCORES through https://scores.gov.in/scores/Welcome.html
