To dematerialise physical shares inherited from a deceased person, the name in the company records needs to be changed first. Contact the Registrar and Transfer Agency (RTA) to update the name as per the inheritor's demat account.
If a joint holder passes away, the surviving holder(s) can get the physical shares dematerialised in their demat account by submitting a notarised copy of the death certificate and transmission-cum-dematerialisation form (PDF) along with the required dematerialisation documents.