A physical shares certificate is a traditional document that represents ownership of shares in a company. Many Indian investors still have old physical share certificates issued years ago. These certificates can become important when dealing with dematerialisation, transmission, name correction, unclaimed dividends, or recovery of shares transferred to the Investor Education and Protection Fund (IEPF).
Although physical shares can continue to be held, SEBI states that fresh transfers of securities in physical form have been stopped since April 1, 2019. Investors generally need to convert physical securities into dematerialised form before transferring them.
For investors with old certificates, understanding the correct procedure is therefore important, particularly when the shareholder’s details are outdated or the original shareholder is no longer available.
How to Transfer Physical Share Certificate
If you are searching for how to transfer physical share certificate, the first thing to understand is the difference between holding physical shares and transferring ownership. Physical shares can still be held, but a new transfer of listed securities generally needs to take place through dematerialisation.
Check Your Share Certificate and Folio Details
Start by checking the company name, shareholder name, certificate number, distinctive numbers and folio number mentioned on the physical shares certificate.
It is also useful to check whether the name and other details on the certificate match the investor’s PAN and KYC records. Differences may need to be resolved before further processing.
Open a Demat Account
To transfer physical securities, an investor generally needs a demat account. SEBI’s investor FAQ explains that an investor holding physical securities who wants to transfer them should open a demat account and convert the physical securities into dematerialised form.
The investor can approach a Depository Participant (DP) to initiate the dematerialisation process.
Submit the Dematerialisation Request
The physical certificate and required documents are submitted through the applicable dematerialisation process. The DP and concerned RTA/company verify the request before the securities are credited to the demat account.
Once the shares are successfully dematerialised, they can generally be dealt with through the demat system according to applicable rules.
When Physical Shares Belong to a Deceased Shareholder
Physical share certificates are often discovered by family members after the original shareholder has passed away. This situation is different from an ordinary sale or transfer.
Transmission Through Legal Heirs or Nominee
Transmission refers to the passing of ownership because of events such as the death of a shareholder. SEBI guidance distinguishes transmission from an ordinary transfer and provides procedures involving the nominee or legal heirs.
The required documents can depend on whether a nomination exists and the circumstances of the claim.
Documents for Transmission
Depending on the case, documents may include the original share certificate, death certificate, transmission request documents, identity documents and succession-related papers.
For cases without a nomination, additional documents such as a succession certificate, probated will, indemnity or No Objection Certificate may be required depending on the circumstances.
Old Certificates and Missing Records
Older physical certificates may involve additional challenges, including outdated addresses, signature differences, name mismatches, lost certificates or incomplete folio information.
A document review can help identify the appropriate process before submitting a request to the concerned company or RTA.
Physical Shares and IEPF Claim Filing
Some investors discover that their old shares or unpaid dividends have already been transferred to the IEPF. In these situations, the process is different from a standard dematerialisation request.
Check Whether Shares Were Transferred to IEPF
The current status of the investment should be checked before deciding which process to follow. If shares have been transferred to the IEPF, the claimant may need to use the prescribed IEPF claim procedure.
The official Form IEPF-5 instructions specifically provide for claims involving physical holdings and require the relevant folio number when the holding type is physical.
Prepare Supporting Documents
IEPF claims can require documents establishing entitlement to the shares or unpaid amounts. The official instructions include proof of entitlement such as a share certificate, dividend warrant or other relevant records.
Organising these documents correctly can help avoid unnecessary delays caused by incomplete information.
Get Professional IEPF Claim Filing Support
Expertvuw provides IEPF Claim Filing assistance for investors dealing with unclaimed shares and dividends. Professional support can include document organisation, claim preparation and procedural follow-up with the relevant parties.
Visit the Website
If you have a physical shares certificate and need assistance with dematerialisation, transmission, unclaimed shares or IEPF Claim Filing, visit Expertvuw.
You can review the available services and contact the team for assistance with your particular shareholder matter.
Consultation
Discuss Your Share Certificate
If you have an old physical shares certificate and are unsure whether it needs to be dematerialised, transmitted or recovered through an IEPF claim, a preliminary review can help identify the applicable process.
Get IEPF Claim Filing Assistance
If your physical shares or unpaid dividends have been transferred to IEPF, Expertvuw can assist with the IEPF Claim Filing process and related documentation.
Contact Expertvuw
For assistance with physical shares, transmission, dematerialisation or IEPF claims, contact Expertvuw:
+91 80768 85539
+91 88829 91427
Visit Expertvuw to learn more about the available shareholder and IEPF services.
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