'How To Dematerialise Paper Stocks': Finfluencer Asks After Discovering 20 Tata Steel Shares Bought In 1992

It has been 30 years since the Indian stock market shifted to dematerialised form of share trading. Physical shares were not only susceptible to theft, they also required several middlemen to buy or sell them.

Demat form of shares has made the process more secure and fast while also making the equities market more inclusive for retail participants.

However, some people may still be holding shares in physical form or they may have found paper shares bought by family members before the demat trading system kicked in 1996.

This was exactly the case of financial influencer Dhanesh Gianani who, according to his post on X, found 20 paper shares of Tata Iron and Steel Company, which is today known as Tata Steel. It could not be found out how much return he was expected to get as he did not revealed the buying price of the stock.

In another post, Gianani asked for the process of converting paper into demat form. Many X users reacted to Gianani's post and wondered about the same.

Trading of paper shares prohibited since 2023

While the Securities and Exchange Board of India (Sebi) does not allow trading in physical shares today, there is still a way to convert them into demat form.

The Sebi in 2023 tightened rules around physical share certificates, making dematerialisation necessary for investors seeking various services related to their holdings.

Physical transfer or sale of shares in paper form was prohibited since in October 2023.

What is dematerialisation
Dematerialisation refers to converting physical share certificates into electronic records stored in a demat account maintained through a Depository Participant (DP).

Once converted, shares become part of an investor’s digital portfolio and can be accessed through a stockbroker’s platform or the DP’s portal.

Electronic holdings are maintained through central depositories such as NSDL and CDSL, reducing risks associated with lost, damaged or forged paper certificates.

Steps to convert physical shares into demat form

To dematerialise shares, investors must first open a demat account with a registered DP. They then need to submit a Dematerialisation Request Form (DRF) along with original share certificates.

The DP forwards the request to the company’s Registrar and Transfer Agent (RTA) for verification. After approval, the equivalent electronic shares are credited to the investor’s demat account, usually within 15 to 20 working days.

However, the process may face delays if discrepancies are found in records, including signature mismatches, name differences or incomplete KYC details. Investors who have inherited physical shares must complete the transmission process first by establishing legal ownership.

Investors should also ensure that their PAN, address and bank account details are updated with the DP.

Holding physical shares without conversion could affect access to dividends, bonus issues and other shareholder benefits.

Stock brokers like Zerodha also offer services related to converting physical shares into demat form.

Published on: Monday, August 10, 2026, 01:14 PM IST