how to convert physical share to demat

moneycontrol, physical share to demat, stock market, moneyplant

 Friends, today's topic is going to be fun.  Along with being fun, it is also going to be important.  If an old cupboard is found in your house, in which you can find a book of physical shares and the share of the company which has shared is still at a high level, from which you will feel that you will get a big amount, but it is not so easy.  Because against the rules of the market regulator, you cannot sell or transfer physical shares in the stock market.

 Today we will talk about how to convert physical shares into digital shares.  How can we transfer our physical shares to demat account?  They will have to be converted into electronic form i.e. converting to demat.

 Even today, many people of the country must have kept physical shares.  To sell which you have to transfer in demat because, in the order issued by market regulator SEBI in 2019, it has been said that now physical shares can be bought or sold only by transfer in demat.

 What to do with physical shares?

 If you have held physical shares of any company, if you want to sell this share, then you can sell it by converting it from physical form to electronic form.  For which a demat account has to be opened.  You can open your demat account by visiting any broker.  Whose brokerage charge is less.  You can sell by converting in electronic form as per SEBI rules.

 Which shares can I convert?

 One thing you have to keep in mind, you can put the shares of the same company in the demat account through an electronic form, which company is currently active in the stock market and is trading in the index of Nifty and Sensex.  If that company is not listed in the stock market then you cannot sell that share, this share is no longer of any use.

 If still, you insist on selling it then your time will be wasted.

 How to convert physical shares to demat

 If trading is still taking place in the shares of the company, then let us tell you how to take physical shares into a demat account.

 There are 5 steps to convert to electronic form.

 1- First of all, you open a demat account with any of the depository participants, stockbrokers.  In this, you have to do your KYC verification

 2- When your demat account is opened, you can place a request to convert your physical shares into a dematerialized format

 3- You have to submit your physical shares along with the Demat Company Dematerialisation Request Form (DRF).  Use different forms for different companies

 4- After this, you will be given an 'Acknowledgment Slip' for all the surrendered shares.

 5- After verification, your physical shares will be credited to demat account and physical shares will be destroyed

 I hope you know how to convert physical share to electronic form.  Stay connected and share for more information Thanks.

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