Enter Dematerialisation and Digital Shareholding, The Hero MotoCorp Way

In a world where digitisation is the new normal, physical documents are becoming obsolete. Big names in the Indian business playground, including the renowned Hero MotoCorp, have undergone a rapid, digitised transition (thanks to the SEBI regulations), thus promoting paperless documents to another level.

However, this digital shift is not just limited to documents, it has also led to the dematerialisation of shares into electronic form, and has confused many about what this term means. Don’t worry, though; this blog will be a literal roadmap for you to understand dematerialisation and its implications.

What is Dematerialisation of Shares?

As you might have guessed from the term, dematerialisation of shares refers to the procedure through which you can transform your share documents for any company into a paperless form while heightening its security and accessibility.

Why is Dematerialisation Important?

Dematerialisation comes with an array of benefits associated with its name. It benefits not only businesses, but you as well (if you own shares of any company, of course). Let’s take a peek at how dematerialisation of shares can help you out.

Amps Up Security

With dematerialisation, you no longer need to worry about your documents being lost, stolen, or damaged. All your documents are backed up and stored securely in a digital vault, thus minimising the risks of damage/loss to a great extent.

Handling Shares, Now Easier

By dematerialising your shares, you can ensure an easy and safe transfer of documents. Not only that, you can buy, sell, transfer, or do whatever you want to with your shares- all of these with great speed. Sounds quite effective, doesn’t it?

Ensures High Cost-Effectiveness

Dematerialising your documents can help you cut expenses to a great extent, by removing the then-obsolete spending. For instance, dematerialisation of shares would render stamp duties and physical storage useless, thus slashing their cost.

Complies with Regulatory Measures

By shifting to dematerialisation, you are practically keeping yourself aloof from any legal trouble. As mentioned before, the MCA has made it mandatory to shift to dematerialisation; thus, not complying with it might have landed you in legal complications.

Heightened Traceability

Digitisation has its perks, and traceability is one of them. Unlike physical, paper documents, digital documents facilitate the availability of a digital footprint, which makes it easy for you to keep track of your documents.

Step-by-Step Process of Shares Dematerialisation

Now that you’ve come across the prominent benefits of shares dematerialisation, your interest might be piqued to know how to efficiently carry out dematerialisation. Well, relax- this section talks just about that.

Step 1: Open a Demat Account

Firstly, you would need to choose a Depository Participant (DP), an agent of a Depository who acts as an intermediary between you and the Depository involved. Upon contacting, you shall be guided through the procedure, thus creating your Demat account. Make sure to keep your physical documents with you.

Step 2: Documents Required for Dematerialisation

Keep your documents handy, such as your PAN for ID verification. If not available, you may use your DL, Aadhar Card, or Voter Card. While all these things are the basics to verify your credentials, the DRF (Demat Request Form) would be the crucial document to initiate the dematerialisation process, which you shall get from your DP.

Step 3: How to Convert Physical Shares to Demat Form 

Once you get your hands on the DRF, fill in the necessary details with precision. Ensure that the credentials filled up on the DRF match with those of your Demat account. Once done, hand over your physical documents to your DP and wait till the RTA (Registrar and Share Transfer Agent) verifies the authenticity of your certificate.

Step 4: Timeline and Costs Involved 

The entire dematerialization process typically takes anywhere between half a month to a month from the time you submit your DRF and physical certificates to your DP. This can vary based on the RTA’s processing speed and any potential discrepancies in your application, so make sure that you fill out your details as accurately as possible.

Mandatory Dematerialisation for Private Companies (2025 Update)

Dematerialisation was initially perceived as a mere concept before the intervention of the government bodies. For instance, the MCA (Ministry of Corporate Affairs) laid out deadlines for mandatory shares dematerialisation for private firms (except small-scale and producer companies) based in India. The most recent deadline for this process, as of now, is the 30th June, 2025, when it was extended from an earlier deadline of the 30th September, 2024. ‘

Now you know why corporate giants such as Hero MotoCorp shifted to dematerialisation of shares this fast.

How to Check Shares Transferred to IEPF

Before we move on to the section mentioned above, we need to know what IEPF is. Well, let’s not beat around the bush and dive straight away.

What is IEPF, and Why Are Shares Transferred?

Although shares dematerialisation is a good strategic move, have you ever run your mind on what happens to the shares that go unclaimed for years? Well, the Indian government has a special fund that protects investor interests, while helping with returning such assets, also known as the IEPF (Investor Education and Protection Fund).

Wondering how to check your IEPF status and claim shares? Be patient, we’ve got you covered in the next section.

Step-by-Step Guide to Check Status Online

Step 1: Visit the Official IEPF Website

The first thing you should do is open the official site of IEPF. Upon opening the website, you shall find numerous options, but wait, let’s proceed to the next step to give you a detailed set of guidelines.

Step 2: Navigate to the “Unclaimed Amounts” Section

Find your way to a section or tab that seems somewhat related to “Unclaimed Amounts” or “Search Facility.” If you manage to find the perfect section, you shall come across a clear link to look for “unclaimed accounts” or “Check IEPF Status.”

Step 3: Enter Credentials 

You need to enter relevant credentials, as asked. You need to fill out your name, either parent’s name, the name of the company, Folio number, Aadhar number, and lastly, DP ID and Client ID (if your shares are already dematerialised). Keep these details within your reach while checking.

Step 4: Review Search Results

Once the website registers your credentials, it will display any matching records of unclaimed shares. If the system manages to find your details, it will then display information about the company, the number of shares, and the unclaimed share amounts.

Step 5: Check the Company’s Website 

Apart from the IEPF portal, it would be a smart move from your side if you check the investor relations sections of the company’s website (in which you have shares). Additionally, some companies publish lists of shareholders whose dividends and shares are likely to be transferred to the IEPF.

How to Claim Shares from IEPF

Step 1: Obtain an Entitlement Letter

This is one of the key steps before filing your claim with IEPF. Contact the company or its RTA, they would help you confirm the details of your shares transferred to the IEPF and might also issue an Entitlement letter.

Step 2: Fill out Form IEPF 5

Open the MCA portal, where you shall find an IEPF services section. Once found, look out for the IEPF 5 form, and fill it out with your personal and Demat account details. You’ll then get a Service Request Number. Keep this with you- it’ll be important in the later steps.

Step 3: Submit Your Documents

Print out the IEPF 5 form and submit it to the company’s registered office, whose shares you possess. You’d also need to attach your documents (such as PAN and Aadhar) along with your share certificates. You can do so by sharing either in Demat or physical form.

Step 4: Verification by the Company

The company’s Nodal Officer will cross-check your claim and the submitted papers. If everything is in order, they will send a verification report to the IEPF Authority within two weeks.

Step 5: Approval and Refund (from IEPF)

Once the company shows a green light, the IEPF Authority will review the company’s verification report and your application. If approved, they will issue a sanction order. Your shares will be credited to your Demat account within 60 days.

The Right Choice for Dematerialisation

Shares dematerialisation can be strenuous, and you need the right support to carry out the process efficiently. Perhaps finding the right agency might help, right? Well, your search might end with Infiny Solutions. Based in Agra, we strive to help you out with your share-related problems, and that too, efficiently.

Wrapping Up

Dematerialisation of shares is the future now. With the ever-growing digital landscape in India as well as the world, dematerialisation might be one of the best choices to make, if not the best.

From corporate giants such as Hero MotoCorp to mid-scale industries, dematerialising shares is a process adopted by all. Infiny Solutions helps you to thrive in this transitioning phase.

Don’t make your shares vulnerable. Retrieve and safeguard your shares with us.