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What is the procedure for transposition and dematerialisation of jointly held shares?

As per SEBI (WEB), if clients have not updated their KYC with their respective Registrar and Transfer Agents (RTA), their folios will be frozen from 31st December 2023, and they will not be able to dematerialise their physical shares. Clients are requested to contact their RTAs if their KYC is not updated. To learn more about RTAs, see What are Registrar and Transfer agents (RTA)?

To dematerialise jointly held physical shares, the names on both the joint demat account and share certificate must be in the same sequence. If the sequence is different, a transposition form must be submitted to change the order of names on the share certificate.

Example Scenario

  • Mr Arun and Mrs Banu are joint shareholders of SBI physical shares with a joint demat account.
  • Names on the share certificate are Mr Arun and Mrs Banu, where Mr Arun is the first shareholder, and Mrs Banu is the second.
  • The names in the jointly held demat account are Mrs Banu and Mr Arun, where Mrs Banu is the first holder, and Mr Arun is the second holder.
  • To dematerialise SBI shares, the transposition form must be submitted. The form must be signed in the order of the names of the demat account first by Mrs Banu, the first holder, and Mr Arun, the second.

The documents required to transpose and dematerialise the physical share certificates are:

  • 1 Transposition form (PDF) for each share certificate.
  • 2 copies of the Dematerialisation Request Form (DRF) (PDF) for each share certificate per company. See How to fill a Dematerialisation Request Form (DRF)?
  • 2 DRFs are sufficient for up to 4 share certificates of the same company. For more than 4 certificates, an extra DRF has to be submitted.
  • The original share certificates should be submitted along with the DRFs. Before sending them, keep a copy of the physical share certificates for personal reference.
  • Self-attested copy of PAN.

How to sign the forms?

  1. The transposition form must be signed in the same order as the names on the joint demat account.
  2. The DRF must be signed in the order of the names on the share certificates. Signatures are required in the Signature with DP (Zerodha's record) and Signature with RTA fields.

Courier the documents to:

153/154, 4th Cross, J.P Nagar 4th Phase,
Opp. Clarence Public School,
Bengaluru - 560078

Did you know? The RTA can take up to 30 days to complete the dematerialisation process.