Old Paper Shares? Convert to Demat or Lose Value

Millions of Indians still hold old physical share certificates that can't be traded. SEBI has made it easier to convert them to demat form. Here's what you need to know before your shares become untradeable.

Here's what happened: SEBI has simplified the process for converting old physical share certificates into demat form, making it easier for retail investors to unlock legacy holdings.. Physical share certificates of listed companies cannot be sold or transferred on Indian stock exchanges — demat conversion is mandatory for any transaction since April 2019.. A structured framework now exists for handling difficult cases — including shares of merged, delisted, or dormant companies — through depositories and the IEPF authority..

What you should do: Search your home files, lockers, and family paperwork for old share certificates — especially inherited ones from parents or grandparents.. Contact your SEBI-registered Depository Participant (DP) or broker with your original certificates and a filled Demat Request Form (DRF) to begin conversion.. Check that your name, address, and PAN in your demat account KYC exactly match the details printed on the physical certificate — fix mismatches before submitting..

Pro tip: If a company on your old certificate has been acquired or merged, the shares may have been converted into the acquirer's stock — check the BSE/NSE corporate action history before assuming the holding is worthless.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.