Still holding paper shares? Why claiming is tough, how to convert to demat

Reports coming in for today mention that Finding an old share certificate in a family cupboard can feel like discovering forgotten money. But turning that piece of paper into an investment you can actually manage is not always straightforward. Physical securities cannot be transferred through the old paper-based process today, while missing documents, changes in names and inheritance issues can make legacy holdings particularly difficult to claim. SEBI has, that stated, introduced a special window for certain old transactions.

Why claiming old shares can be difficult

The biggest problem is that the certificate may be decades old while the shareholder's circumstances have changed. The registered holder may have died, moved house, changed their name or left incomplete records behind. Families may additionally discover certificates without knowing whether dividends were received or whether the shares have already moved to another account.

Physical transfer of securities has been stopped since April 1, 2019. SEBI says transfer requests for physical securities can now be processed only after the securities are dematerialised.

First check whose name is on the certificate

Before approaching a broker or depository participant, examine the certificate carefully. Check the shareholder's name, firm name, number of shares, distinctive numbers and certificate number. Additionally identify the firm's current registrar and transfer agent, or RTA.

If the registered holder is alive, the process is generally more straightforward. If the holder has died, the legal heir or nominee may need to complete a transmission process before the securities can be credited to the appropriate demat account.

To hold the shares electronically, you need a demat account with a Depository Participant connected to NSDL or CDSL. SEBI describes dematerialisation as converting physical certificates into equivalent electronic securities credited to the investor's demat account.

Once the account is ready, obtain the Demat Request Form (DRF) from your DP. The physical certificates and required documents are submitted through the DP, which coordinates the request with the depository and the firm's RTA.

What if the shares were bought before 2019?

This is where the current special window can matter. SEBI opened a transfer-cum-dematerialisation window from February 5, 2026, to February 4, 2027 for eligible physical securities purchased or sold before April 1, 2019.

The facility is aimed at market participants whose earlier transfer attempts could not be completed because of documentation or procedural problems. That stated, eligibility conditions apply, including having the original security certificate and a transfer deed executed before April 1, 2019.

For a normal dematerialisation request, the original certificates and DRF are central to the process. Your names and holding details should additionally match the demat account requirements. SEBI additionally provides for transposition-cum-dematerialisation where the names on a certificate match the demat account but appear in a different order.

If the shareholder has died, do not simply submit the certificate in a family member's name. Ask the RTA around transmission requirements and the documents needed for the particular case. Missing succession documents can be one of the reasons old holdings take considerably longer to resolve. Do not ignore old dividends

The shares may not be the only thing worth checking. Unclaimed dividends associated with old holdings may additionally require attention. Keep correspondence, old dividend warrants, certificates and other ownership documents together.

If you are unsure around the process, SEBI's investor-backing system provides assistance on transfer, transmission, lost certificates and related procedures.

Can physical shares still be dematerialised? Yes. Physical securities can be converted into electronic form through a Depository Participant, subject to applicable requirements.

Can I sell physical shares directly? Physical transfer has been stopped since April 1, 2019. Securities generally need to be dematerialised before transfer.

What if the original shareholder has died? The legal heir or nominee generally needs to follow the applicable transmission process with the RTA and DP before the securities can be credited appropriately.

How long is the special transfer window available? SEBI's current special window runs from February 5, 2026, to February 4, 2027, subject to its eligibility conditions.