With a free Demat account, as an investor, you can convert physical shares to electronic shares. This makes trading shares much more convenient. Ensuing the re-lodged share transfer request, the SEBI (Securities and Exchange Board of India) implemented a new operational guideline to convert physical shares to Demat forms. Let us dive deeper into the new norms issued on how to convert physical shares to Demat in 2021.
SEBI is known as the regulatory body that was formed in April 1992. Its primary duties are to regulate the Indian securities market and capital market. These regulations are monitored daily. It also protects the interest of investors in the capital and securities market by preventing suspicious practices in the Indian capital market.
SEBI put out a circular on 7th September 2020 stating that 31st March 2021 was going to be the final date for the share transfer request and to convert physical shares to Demat in 2021. Another circular was issued on 2nd December 2020, specifying the operational regulations to convert physical shares to Demat. The norms issued were:
To Wrap Up:
The regular monitoring of India's capital market by SEBI has expedited several improvements regarding the roles of the Demat accounts. The newly issued norms to convert physical shares to Demat in 2021 are crucial since they reinforce the safety of net-based trading of shares. Furthermore, it is convenient for the Indian government to trace financial instruments in case of any misconduct. To start trading safely, open a free Demat account at Motilal Oswal.