How to convert physical shares to demat via Zerodha

Tue, 12 May 2026 00:00:00 +0000

Physical share certificates are paper documents that evidence ownership of shares in a company. Since the introduction of the Depositories Act 1996 and subsequent SEBI regulations, all trading of listed securities must be in demat (electronic) form. Physical certificates can still be held as evidence of ownership, but they cannot be sold on stock exchanges until they are converted to demat form.

SEBI’s LODR Regulations (Regulation 40) and SEBI Circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8, 25 January 2022, effectively mandate that all transfers of listed equity shares occur only in demat form. Holders of physical certificates are not compelled to dematerialise, but their ability to transact is severely restricted.

DRF on WebNotes

How to convert physical shares to demat via Zerodha