Demat Conversion Guide 2025

5 Critical Mistakes That Reject Your Request

Converting physical shares isn't as simple as submitting a form. A single signature mismatch can delay your wealth for months. Learn how to avoid the "Rejection Trap".

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By KMFSL Experts

Demat Specialists

6 Min Read
Read in Hindi
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Demat Rejection Mistakes
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The Reality of Demat Conversion

SEBI has stopped the transfer of physical shares. This means your paper certificates are frozen assets until they are dematerialized. However, 40% of DRF (Demat Request Form) applications get rejected due to minor technical errors.

The DIY Risk

One wrong tick mark can send your original certificates back via post, risking loss in transit.

The KMFSL Guarantee

We pre-verify your DRF and affidavits to ensure 100% acceptance on the first try.

01 Signature Mismatch

This is the #1 reason for rejection. Your signature on the share certificate (signed 20 years ago) likely doesn't match your current signature.

The Mistake

Signing the DRF with your current style without getting it attested by your banker. The RTA will instantly reject it.

The Fix

You must submit a "Signature Attestation Form" verified by your bank manager. KMFSL helps you draft this correctly.

02 Name Discrepancies

Is your name "R.K. Sharma" on the certificate but "Rajesh Kumar Sharma" on your PAN Card? This small difference is a major hurdle.

Risk: RTAs are extremely strict. They will not assume R.K. stands for Rajesh Kumar. You need a specific affidavit (Name Mismatch Affidavit) on a stamp paper of appropriate value.

03 Ignoring Joint Holder Rules

If the physical shares are held jointly (e.g., Husband + Wife), the Demat account MUST be in the exact same order of names.

The "Name Deletion" Trap

If one joint holder has passed away, you cannot simply demat the shares. You must first do "Transmission" (Name Deletion) and then Demat.

  • Solution: Submit a notarized death certificate along with the Transmission Request Form.

04 Submitting Torn or Mutilated Certificates

If your certificates are torn, taped, or the folio number is illegible, the DP will refuse to accept them.

The Solution: You cannot use the standard DRF process. You must first apply for "Duplicate Share Certificates" with the company, which involves an FIR copy and newspaper advertisement. KMFSL handles this tedious process end-to-end.

05 Ignoring New KYC Norms (ISR-1)

SEBI has made it mandatory to link PAN, Aadhaar, and update KYC details using Form ISR-1. Without this, your folio is frozen.

Is Your Folio Frozen?

If you haven't updated your KYC, your shares are likely already frozen. KMFSL helps you unfreeze them and proceed with Demat.

Check My Folio Status

06 Frequently Asked Questions (FAQ)

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About KMFSL

We are India's leading asset recovery firm. We specialize in complex Demat conversions, name corrections, and lost share recovery.

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