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Dematerialisation of Shares

Dematerialisation of Shares

Most companies are now required to issue and hold shares only in demat form. Even for private companies, dematerialising share certificates is becoming essential for compliance, fundraising, director KYC, and smooth share transfers. Physical certificates slow everything down and often create disputes. Demat brings transparency and eliminates paperwork.

We help your company and its shareholders move from physical to electronic shares without hassle.

What we do

  • Check eligibility and compliance requirements

  • Assist shareholders in opening demat accounts

  • Coordinate with NSDL/ CDSL depositories and RTA

  • Verify and process physical share certificates

  • Handle transmission, consolidation, or split of shares in demat form

  • Maintain records and support during audits or due diligence

Why this matters

Dematerialisation is now a key compliance requirement. Without demat shares, companies face restrictions on share transfers, private placements, buybacks, and certain ROC filings. Investors and lenders also prefer companies whose cap table is fully updated and digitised.

Frequently Asked Questions

It’s the process of converting physical share certificates into electronic form held with a depository (NSDL or CDSL).

 

Yes. As per recent amendments, private companies must issue securities only in demat form and ensure directors, promoters, and shareholders dematerialise their holdings.

 

Once documents are submitted to the RTA, the process usually takes 2–3 weeks.

 

Demat account details, PAN, Aadhaar, cancelled cheque, original share certificates, and a duly filled Demat Request Form (DRF).

 

Once dematerialised, the certificates are cancelled by the RTA and recorded electronically.