When companies are issuing shares today, they issue the shares in demat mode only. But, what about old share certificates; what to do with them? These share certificates have to be dematerialized. If you are sitting on a bunch of physical share certificates, then you can open a demat account with a DP and then submit the demat request form (DRF) for each company and submit the DRF to your DP. Then the DP will send to the registrar and new shares will get credited into your demat account after registrar is satisfied in all respects…
But, before you send for demat remember to check if your share is available in demat mode or not. This is essential before defacing your shares certificates. Before you open a demat account you need to know that there is a special facility offered by SEBI wherein up to 500 shares of holdings can be sold through the special window in the physical form itself. This is 500 shares without any price limit. But this may entail a discount based on the market interest level. But the person who buys from this window will have to get the shares converted into their demat accounts and it cannot be re-sold in physical format. That means you do not have to worry about opening a demat account at all. But we advise you to open a demat account and start using it for your trading. So the next step to dematerializing your physical shares is to open beneficiary owner (BO) account with a DP.