Demat of Physical Share Certificate: A Simple Guide to Modern Shareholding
In the earlier days of investing, shareholders were issued paper-based share certificates as proof of ownership. While these physical documents once served their purpose, they are now considered outdated and risky. With the evolution of the Indian stock market, the Demat of Physical Share Certificate has become an essential step for investors who want safety, convenience, and compliance with current regulations. Physical share certificates are vulnerable to damage, loss, theft, and forgery. Moreover, regulatory bodies have made it mandatory to hold shares in electronic form for any sale or transfer. This makes it necessary for investors to convert physical shares to demat to fully enjoy their ownership rights without legal or procedural hurdles. The dematerialization of shares is the process through which physical share certificates are converted into electronic form and credited to a Demat account. This process eliminates paperwork and enables seamless trading, transfer, ...