InvestorQ : What do we mean by physical shares
Swati Naik made post

What do we mean by physical shares

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Deepa Salunkhe answered.
3 years ago
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Physical shares are share certificates. Actually, they do not exist any longer. We do not deal in physical shares any longer. But in the old days, we used to deal with physical shares. They used to be paper certificates. If you had 100 shares of a company, they would issue share certificates. You had to keep them safely, If it got lost, it was a very big problem. Imagine if your certificates got eaten by rats. That was also a problem. That is why share transfers used to take so long in the old days. This was the scene before 1997. After 1997 most of the trading has been happening in demat form only. That means no physical shares.
Say, I am having 100 shares of Reliance. Then the company will issue me a certificate. The certificate will mention my name and also how many shares I am holding. I can hold shares in joint names. Like my wife and I can jointly hold shares. Then my name and my wife’s name will be mentioned in the share certificate as joint holders. The process was very long. You would apply and then you would get the certificates and when you sell shares it was another long process. It was not as simple as it is today. Like, today everything happens in a few days time. It is because of all these problems of physical shares that India shifted to demat.
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