Dematerialization of Stocks

Hi Zerodha Team,

My Parents have shares of some companies in physical form. The scenario is some of them are in the name of Father, some in the name of Mother and some in the name of both.

  1. How many demat accounts we need to open ?
  2. Will there be any charges apart from account opening charges to dematerialize the shares?
  3. How can I transfer the shares to my account (I Have a Zerodha Account) post demat?

@PKB 1. you can choose any of the option as per your convenience : A. since post demat you want to transfer all shares to your demat only , it is better if you can physically transfer all the shares on the exact name (your name )which there is a demat account .after the shares transferred on your name get the same demated. B. open different demat accounts exactly as per the name on share certificate .in this case the same name should match with your pan card and aadhar card etc. C.transfer all physical shares on one name and open one demat account of exact this name.
2.beside account opening charges like stamp paper agreement etc there will be AMC charges plus demating charges .amc charges may not applicable if the total value is rs 50000 or less but for this you have to insist on BSDA demat account.
3.pots demat you can transfer all the shares through a DIS slip for which nominal transfer charges will incur.

How to convert physical shares to Demat if person is Illiterate (don’t know how to read or write)?

@Deepak_Kumar3 : the person must have signed or got thumb impression attested in the application form or transfer deed as the case may be while acquiring the physical shares . same process should be there while handing over to DP for demating.


Which is the best way to transfer physical shares of my parents to my Zerodha demat account?
Pls. let me know the procedure for the same.


Can check this, for more info can create ticket there.

@Mahadish : if your father has a demat account exactly as per the name on share certificate it is very easy .simply handover the physical shares to the DP where he has a demat account and fill a de materialization request form. the DP will do the same . share will be demated in about 10-15 days .
if your father do not have demat account and he doesnt have many shares so as the need to open a demat account ,transfer all his physical shares on your name and than have the same demated .this will take about 45-60 days.

I need to go to Registrar for transfer of physical shares from my Father to physical share in my name?
How long is the process and how about the safety of the certificates, if they are misplaced?

Why don’t you just create ticket there where you can get all answers.

have already done that. no reply yet.

Can give sometime, or can message me ticket number.

Ya, ill wait for the reply. Else will give you the ticket no. Thanks.

@Mahadish : no need to go to registrar office . you have to use share transfer form ( can be downloaded from net ( SH-4) and affix or get franked it by share transfer stamps @0.25% market value of shares .the duly executed form along with share certificate need to be sent by Registered post /speed post to registrar.if seller (your parents ) signature match it will be transferred on your name(buyer)within about 30 days .if objected due to signature mis match you have to get the signatures verified on your bankers letter head .I must have done this process of sending physical shares for transfer at least few hundred time in physical share era and also few dozen times in this demat era ( last sent on 7 august 2018 ) and never faced any issue about loss either in post or at registrar office.

Thanks for the info.
Is it advisable to transfer fathers physical share into demat (open a new account for father) and then transfer to my demat via DIS?
Or the method you said above is better?

@Mahadish : It is faster if you can open a demat account on the name of your father and get the physical share demated but PLEASE note that the name on share certificate should exact match with the name on his pan card and aadhar card otherwise demat account may not be opened. once the share get demated on your father’s name you can transfer to your demat by using DIS and close your fathers demat account . …may turn out bit expensive but easy and faster.

@Mahadish : i mean demat account can be opened with pan card and aadhar card but when you handover the share certificate with slightly different name it will be rejected.

How expnesive would it b?
If i have 20 lacs worth of share in only 1 script and 4 physical certificates.
THanks in advance.

in your case physical transfer will be very very expensive . Demat charges of my DP ( may differ slightly with other dp’s) are rs 5 per certificate plus dispatch charges means in your case it should be rs 20 plus say 60 rs total 80 only.yes there will be demat account opening charges like rs 100 stamp paper agreement and rs 360 per year AMC which is refunded proportionately when you close the account.very nominal in your case .just make sure the name on share certificate is exact same as of demat account you need to open.

@Mahadish : after having shares demated on your father’s name you can either sell in his account only if he is registered with a nse/bse member or if not transfer the shares to your demat in an offline mode for which my DP charges 0.04% of market value if above rs 2 lakh or maximum rs 1000 per ISIN.

Thanks for your response.
“in your case physical transfer will be very very expensive”
Why would it be so expensive.

How much would be the difference.