Dematerialisation of Shares
Last updated: August 2026 · Reviewed by the Ravel Corporate Advisors team
Company law now requires many private companies to hold and transfer shares in electronic form. We help companies dematerialise their shares — from obtaining an ISIN to converting existing certificates — and stay compliant.
Key takeaways
- Converts physical share certificates to secure electronic form.
- Now mandatory for many private companies (except small companies).
- Involves ISIN, a depository/RTA tie-up and demat conversion.
- Keeps your company able to issue and transfer shares.
What the process involves
- Obtaining an ISIN for the company’s securities.
- Tying up with a depository (NSDL/CDSL) and, where needed, an RTA.
- Converting existing physical shares to demat form.
- Enabling shareholders to hold shares in demat accounts.
- Related MCA filings and ongoing compliance.
Why it matters
Under the extended Companies Act requirements, private companies beyond the “small company” threshold must dematerialise their securities and route future issues and transfers through the demat system. Until the company complies, it can be blocked from issuing new shares or allowing transfers — directly affecting fundraising and succession.
Our process
- Applicability check — whether the rules apply to your company.
- Setup — ISIN, depository and RTA coordination.
- Conversion — physical shares dematerialised.
- Compliance — filings completed and records updated.
Demat fits within your wider ROC compliance and annual filing.