Simplify Your Investment through Dematerialisation of Shares in 2025

A problem with physical share certificates is that they can be destroyed or perished for a variety of causes.

This is the digital age where you cannot ignore a single chance of your physical share certificates being stolen or manipulated.

The dematerialisation of shares – a relatively easier and simpler process than what it’s considered – saves your physical share certificates from these risks.

Moreover, they make transactions, transfers, and many other things easy for shareholders and investors.

Dematerialising shares means transferring your physical share certificate to their electronic version to create a digital account. Although this process sounds simple, there are steps you don’t want to mess up unless you want troubles later.

Besides that, this entire procedure may take time.

The consultants at Infinity Solutions can speed up the process, minimising multiple probabilities of errors and showing you correct ways to dematerialise your shares without a single hiccup.

We are a certified consultancy service for unclaimed investment recovery, share transmissions, share transfer, and issue of duplicate share certificates. Helping countless clients to declutter their share formalities, we have become a well-known and unskippable name in the fields of investment and share recovery.

In this post, we tell you what dematerialisation of share is and how that may come in use to safeguard your share documents, turning them into more functional and effective documents.

What is the Dematerialisation of Shares? 

As mentioned before, the dematerialisation of shares is a process that transfers your physical share certificates into their electronic version with correct ownership details.

As a matter of fact, share dematerialisation is a process that extends your share ownership alongside converting it. You get to enjoy more privileges with the electronic account, which you call the ‘demat account’.

With the Demat account, your share certificates are no longer confined to the physical version, which is exposed to, ironically, limitations.

More than that, physical share certificates are also at risk of getting destroyed or manipulated.

Thanks to the Demat account, you stay worry-free and enjoy more share benefits, of which you’ll be informed more in the next points.

Applicability of Dematerialisation of Shares 

Demat accounts are important because they apply to a distinct part of the market. The information you find below can simplify that for you:

According to Indian commercial laws, all public and private companies are required to dematerialise their accounts. While it’s an unavoidable rule for these companies, there is an exception for the private companies in the case of small companies.

However, a private company that’s a subsidiary of another corporate body needs to dematerialise shares. The same rule goes to the companies that are categorised as holding companies.

Benefits of Dematerialisation 

Going for share dematerialisation is a fantastic way to increase the flexibility and safety of your physical share certificates.

There is a plethora of facilities you can get with the dematerialisation of shares if conducted authentically.

Firstly, you won’t have to worry about your dematerialised shares being destroyed or manipulated.

For the worries of hacks and other digital crimes, you should know that dematerialised share certificates are stored in a secured depository system. These systems manage accounts such as NSDL and CDSL. These systems are connected to the government and, therefore, use very strong security measures.

Think of how fast and effective the transactions are because they are paperless and are made by servers.

Demat accounts are extremely flexible making transfers and fund transfers super easy and quick. You can also use a Demat account to avail better loan facilities, monitor your portfolio, and get a bunch of corporate benefits. Using a Demat account also helps you with better nomination facilities.

How to Dematerialise Shares: A Step-by-Step Guide 

Dematerialising shares is not a very difficult thing if you take the guidance of an organisation such as ours. The process is mentioned below in steps to help you understand it better:

Opening a Demat Account: 

You have to contact a Depository Participant or a DP who is actually working as an intermediary between the investors/ shareholders and the depositories such as CDSL and NSDL.

Submit a Demat Request Form (DRF) 

You will be given a Dematerialisation Request Form or the DRF, which you submit, attaching all your physical share certificates. For your information, you should know that you can also use the duplicate share certificates with the DRF in case your physical share certificates are lost, misplaced, or destroyed.

Verification and Conversion 

The DP is going to verify the DRF and the physical share certificates you have attached to the DRF. On the successful completion of this verification, you will be given a Dematerialisation Request Number or a DRN, which you use to send an appeal to the Registrar and Share Transfer Agent (RTA). With the approval of the RTA, you are going to receive your electronic shares with a demat account, launched and active.

The Role of Key Players 

The dematerialisation of shares is definitely an intricate, complex financial process involving more than one official. The DP and the RTA play a major role in it. Learn about them below:

Depository Participant (DP):  

The Depository Participant is the intermediary financial officer who connects the investors with the depositories known as National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). A DP can be a bank, a broker, a financial institution, and more. The DP helps an investor to open and close a demat account, facilitate the process, and maintain security.

Registrar and Transfer Agent (RTA):  

The Registrar and Transfer Agent (RTA) is another intermediary between the shareholder and the company that looks after the maintenance of correct records of shareholder and investor details and transactions (such as purchases, sales, transfers, and more). The RTA is responsible for the updates in ownership, which is the base of dematerialising your shares. It manages comprehensive maintenance and updates share certificate details,  the issuing and cancelling of share certificates, distributing dividends, and more.

SEBI’s Initiatives to Promote Dematerialisation

Standing out as the Securities and Exchange Board of India, SEBI mandates certain protocols in the shareholder/ investor segment regarding demat accounts with the purpose of streamlining and securing transfers and share formalities. The points below can tell you how:

Mandatory Demat Issuance 

In 2014, SEBI announced the issuing of securities on a public ground with demat accounts. Moreover, in 2019, SEBI mandated a Demat account for the transfer of physical share certificates. However, most recently in 2023, it regulated the allotment of shares in a bonus issue with a demat account only.

Demat Account for Investors 

Investors must maintain all SEBI guidelines for KYC with their share certificates. Moreover, SEBI dictates all the rules regarding opening, closing, and freezing a demat account.

Why Choose Infiny Solutions for Dematerialisation? 

Transferring your share to the demat account includes too many formalities.

Moreover, challenges such as financial constraints or lack of documentation may significantly slow down the process.

We at Infiny Solutions work as an investor consultancy service to streamline the share dematerialisation quickly, safely, and correctly for you.

Working with us, you gain –

• Expert consultants to simplify dematerialising shares
• Wide networking skills to declutter the process
• Safe and secure dematerialisation of shares

We also offer you fast unclaimed share recovery, authentic share updation, and other services alongside effective dematerialisation of your shares.

Talk to us today to learn more and dematerialise your share certificates.