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HomeMCA ServicesChange your businessDematerialization of Shares in India Step-by-Step Guide (2025)

Dematerialization of Shares in India Step-by-Step Guide (2025)

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🧾 1. Introduction

Dematerialization (Demat) is the process of converting physical share certificates into electronic form. This move ensures better transparency, faster transfer, and regulatory compliance, especially for unlisted public companies, as per recent MCA mandates.

In 2025, demat of shares is mandatory for private and public unlisted companies under the Companies Act, 2013 and SEBI regulations.

🌐 Official Website: www.mca.gov.in 🏛️


🗂️ 2. Types of Demat Accounts / Licenses Offered

Depending on the nature of the investor or company, the following demat accounts are available:

  • 🏢 Company Demat Account – For businesses to convert physical shares
  • 👤 Individual Demat Account – For retail investors, directors, promoters
  • 🧾 NSDL / CDSL Depository Participant Account – Brokers and intermediaries

👥 3. Who Needs These Services?

Mandatory for:

  • Unlisted Public Limited Companies (as per MCA notification)
  • Private Companies planning to:
    • Issue bonus/right shares
    • Transfer shares digitally
  • Investors holding physical certificates of companies
  • Companies intending to raise funds or plan IPO

🧑‍💼 4. Why Choose a License Registration Service Provider?

A trusted expert helps in:

  • 🔍 Identifying the right Depository Participant (DP)
  • 📜 Preparing and uploading the necessary documentation (SH-13, SH-14, etc.)
  • 🧾 Coordinating with NSDL/CDSL & RTA (Registrar & Transfer Agent)
  • ⚖️ Ensuring compliance with SEBI, MCA, and Income Tax guidelines
  • 🚀 Speeding up end-to-end process

🛠️ 5. Step-by-Step Registration Process for Dematerialization

✅ Step 1: Open a Demat Account

Open a demat account with a DP registered with NSDL or CDSL.

✅ Step 2: Submit Demat Request Form (DRF)

Submit the filled Demat Request Form along with original share certificates.

✅ Step 3: Verification by DP

The DP verifies the documents and sends them to RTA (Registrar & Transfer Agent).

✅ Step 4: RTA Approval

RTA cross-checks with the company’s records and confirms dematerialization.

✅ Step 5: Shares Get Credited to Demat Account

On successful verification, electronic shares are credited to your demat account.


📑 6. Required Documents

  • PAN & Aadhaar of shareholders
  • Passport-size photos
  • Signed DRF (Demat Request Form)
  • Cancelled cheque (for linking bank)
  • Share certificate(s) in original
  • KYC form of DP (if opening new account)

💸 7. Cost Involved

ServiceApproximate Cost (INR)
Demat Account Opening₹300 – ₹700
Annual Maintenance (AMC)₹300 – ₹500
DRF Processing Fee (per certificate)₹25 – ₹100
Professional/Consultancy Fee₹1,000 – ₹3,000

⏱️ 8. Time Taken

ActivityTime Duration
Opening Demat Account2–3 working days
Document Verification5–7 working days
Share Credit to Account10–15 working days total

⚠️ 9. Common Mistakes to Avoid

  • ❌ Submitting torn or illegible share certificates
  • ❌ Mismatch of name in PAN and share certificates
  • ❌ Not linking demat with correct bank account
  • ❌ Ignoring company-specific RTA requirements
  • ❌ Not checking DP is registered with SEBI

📣 10. Call-to-Action (CTA)

Looking to dematerialize shares smoothly and legally?

📧 Email: opriyatrendingpvtltd@gmail.com
📲 WhatsApp: +91 75887 56518
🌐 Visit: opriyatrending.in

✅ 100% Legal Support | 💼 Expert Consultation | 📋 End-to-End Filing


❓ 11. FAQs

Q1: Is dematerialization mandatory for all companies?

Yes, for unlisted public companies and recommended for private companies planning share transfers or fund-raising.

Q2: How do I know which DP to choose?

Choose a SEBI-registered NSDL or CDSL participant. Your consultant can help shortlist.

Q3: Can I still hold physical shares in 2025?

No. SEBI and MCA have discouraged it. Unlisted companies are now required to maintain shares only in demat form.

Q4: Are there tax implications on demat?

Not for conversion. But for capital gains, STT and other taxes apply on share sales.

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