How to dematerialize physical shares when second holder is different?


#1

There are many cases of physical shares when the first holder name is same on 2 different certificates but second holder name is different.

For example -

On one physical share certificate, first holder is Mr. A, second holder is Mr. B
On other physical share certificate, first holder is Mr. A, second holder is Mr. C

Such cases happen in families where the first holder is same but second holder is different. In this case, how to dematerialize such certificates?

Now from the above 2 certificates, either one of them can easily be dematerialized by submitting the necessary documents but what about the other certificate? As first holder cannot open 2 demat accounts with different holders with same broker so what to do in such case?


#2

You can open 2 demat accounts in this combination: A-B, A-C.


#3

But is that even possible? It is said that with one broker, only 1 account can be opened with 1 PAN. Multiple accounts cannot be opened.


#4

(1) you can always open more than one demat accounts with two different name combination even when first holder is same.(2) transfer shares in physical form to the name on which demat account is there but last date to do is December 05.


#5

not broker but DP . you may not open trading cum demat account but only demat account .you have various choices other than broker like cooperative bank ,shcl etc


#6

Not necessary, one can dematerialize shares even after December 5. Its just that after December 5, transfer wouldhappen only through demat mode for listed securities.


#7

As far as I know, SEBI had released a clarification that 5th December date is only for transfer of physical shares from one person to another, i.e transaction will not be possible. Dematerialization can still happen after 5th Dec, there isn’t any deadline for dematerialization.


#8

i said only about physical certificate transfer from one name to the name on which demat account is there . demat can be done anytime .


#9

YES and i said so. if you want to transfer physical shares from a ,b to ac , or ashok kumar sharma to ashok sharma the deadline is 05 December for listed shares only . for unlisted shares like Philips ,Bharti telecom ,Essar oil ,Essar steel etc the deadline was 03 October.


#10

Yeah I have understood that the deadline is for transfer in physical form and the dematerialization process will continue to work as normal.


#11

Zerodha is both broker and DP.


#12

Open the other demat account where trading account is not a requirement like in cooperative bank or stock holding corporation ltd etc and if possible from taxation aspect transfer these demated share to your regular demat and close this cooperative bank demat.


#13

Ok so for one certificate, dematerialization can happen at Zerodha but for other certificate with different holder, first holder has to open another demat somewhere else and complete the dematerialization process there?


#14

if the value of one share certificate is not much opening a demat account and than closing will be an exercise in itself . if possible act fast and get it physically transferred on the name on which you already have demat account…you need to act real fast .


#15

for example - if demat is opened with first holder as A and second holder as B and the certificate is first holder A and second holder B so to transfer the certificate from A, C to A, B before 5th December and then dematerialize it later? Is this correct?


#16

YES and the best way ( so that almost zero chances of signature differ objection ) is to send bankers letter attesting signature of seller along with duly executed sh 4 form and buyers self attested pan card and aadhar card copy.


#17

@chinmay @nithin @siva : i have a query regarding claim of unclaimed dividends of last 7 years on physical shares …before period has to be claimed from IEPF . it is not difficult to claim the same in normal circumstances but what if surname has changed NOW due to marriage and bank account and documents exits only on the name/surname after marriage .