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What Should You Do if Your Demat Request Form Gets Rejected?

Demat form rejection can be a frustrating experience, especially when you factor in the many new IPOs being introduced to the market. Rejections, although not a common occurrence, can lead to missed opportunities. Investors facing demat form rejections need to find a quick solution before the problem leads to further loss or damages.

However, before moving to fix the problem, it’s important to know why rejections occur in the first place. Only once you’ve eradicated all the errors in your application, should you choose to apply with a fresh demat request form. This article goes through the demat account opening process in detail, so you never have to face rejections.

  • 6 reasons your demat account can get rejected:

There are primarily three reasons why a demat account gets rejected: 

1. Lost certificates: The physical share certificates are not received by the depository or have been reported lost or stolen in the past.

2. Discrepancy in the number of shares: The number of shares mentioned on the demat form does not match the true number of shares.

3. Forged share certificate: The forms are not authentic and have either been forged or are outright fakes.

4. Incorrect Details: Address mismatch or discrepancies in KYC documents as mentioned on the demat form.

5. Physical Signature mismatch: The signature on the demat form does not match the signature on the file.

6. Inconsistent ISIN (International Securities Identification Number): There is a mismatch in the ISIN mentioned on the form and the ISIN number assigned to the holding company. 

  • How to avoid demat account rejections?

1. Prove DRF: Make sure you substantiate your DRF (Demat Request Form) with a physical certificate. You should ideally receive a certificate with every unique DRF.

2. Check Name: Most name mismatches occur when physical forms are carried forward from one generation to the next. Make sure to check the name on the certificate, and if there is a mismatch, submit a legal affidavit confirming the new name on the certificates.

3. Mismatch Signatures: Signatures that don’t match with the specimen signature are a common reason for rejection. Make sure you verify the signature on the demat form. This is  especially true if you are signing after a long time. Any major discrepancies in signature will need to be authorised before a magistrate. The process is tedious and requires considerable time, and is therefore best avoided.

4. Check ISIN Number: Confirm your ISIN number with the RTA (transfer registrar). If there is a mismatch, your dematerialisation request form is sure to get rejected. If that does not help, check with the respective holding company to ensure that multiple ISINs were not issued. 

5. Double Check KYC Docs: Double check all your KYC documents to make sure they match the information on your form. Items like permanent address, father’s name, first and last name order, and others.


The likelihood that your demat account gets rejected is very low, especially when applying online. If you are applying for physical shares or you happen to face rejections due to the reasons mentioned above, make sure to get it rectified as early as possible. Opening a demat account is a relatively simple process that allows investors to hold multiple demat accounts in India. You can allocate one account to indulge in intraday trading and another for future investments. This will give you the flexibility and convenience to manage your investments.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

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