Convert shares in my name

My dad who is very old in age and bought many company's shares before demat era. Either he purchased shares in his names or my mom's name (who is no more) or in my name too. These shares are in physical share certificates formats in these respective holders name.
My dad can no more do any trading activity due to his old age and wants all these shares (bought in his names singly or jointly with my mom's name or my mom's name singly or in my name singly) to be transferred to my name singly (dad or my husband may be the joint holders).
My query is how all these shares can be converted in my name? Especially my mom's name shares (who is expired) to my name. I think my dad is a joint holder for these shares (in my mom's a/c).

Please guide me about the above query.
Thanks in advance.

Best way to go about this is to first open a Demat Account & a Trading Account with a good broking house

Remember Trading account can be in only one persons name whereas Demat account can have upto 3 holders including the first holder.

Therefore you will need to decide whether you want anybody else included in your Demat account.

if there are more than one holder... all correspondence and requisitions will need to be signed by all Holders without exception.... if you find this cumbersome you can always have a nominee..... Nominees at a later date can also be changed.

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Since for the first year most brokerages do not charge AMC (Annual Maintenance Contract)

Open one in your name Where you can submit Those Physical Shares that have only Your Name for Dematting.... There is a procedure & a form to be filled in triplicate & Demat Dept of the Brokerage will help you with the formalities. (Ask For acknowledgment for everything that is submitted)

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Open another Demat account for those physical shares where your name & your dad's name appear ( If your Dad's name appears first then for the demat account your Dad will be the First Holder & You will be the second holder.

Then go through the same procedure as outlined for dematting above.

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Your Dad will need to open another Demat account as a 'Sole Holder' where he can submit those Physical Shares That are only in his name & the ones with your mother's name on the certificates.

He will require a few copies of your Mother's death certificate and follow the procedures as outlined by the Demat Dept. of the Brokerage.

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Once all Physical Certificates have been successfully Dematted....

You can sell those on the exchanges and later buy them back using your own trading account.... This way you will have succeeded in getting all the shares in Your account.

Happy & Safer Investing

SavantGarde

Hi,
Thanks for the reply.

I think you have missed to comment to one of those shares which are in only my mom's name. What to do in this regard?

Hi,

My apologies....for missing the query...

When your dad opens his Demat account... he can use the same procedure first to get the Physical Certificate transferred in his name and then earlier procedure for Dematting to his account.

Demat Dept. of the brokerage house should be able to help with the required procedures...also if there are any certificates where your Dad & Mom's Name are present make several copies preferably colour copies as supporting document incase if the registrar rejects it for some reason.

One more thing make Copies of all the Physical shares (front & Back) on the same paper as the physical certificates are...and keep them safely with you.

Happy & Safer Investing

SavantGarde

Hi,
Though you have explicitly try to describe the procedures for how to convert physical shares into demat form. But I have still some doubts about the opening of trading as well as demat accounts. Let me explain how the shares are held. There are various combinations in which my father purchased shares, which are as follows:

1. Only my father's name
2. Only my name
3. My father (as a first name) and my late mother jointly
4. Only my late mother's name
5. My late mother (as a first name) and myself jointly
6. My father (as a first name) and myself jointly

Now please explain the accounts required for the above combinations.

More info: My husband has demat account with a brokerage firm in his name. Also bank account linked with the demat account is jointly held with me.
Can anyway this demat account be used for this purpose?

Thanks.

Hi,

Ok... let me try & simplify this further.....

Father's Name, Father & Mother, & Only Mother

Above requires only 1 Demat & Trading account where your father is the 'Sole Holder'

1) Certificates only in your Father's Name will Get dematted with a simple DRF (Demat Request Form) from his broker's Demat Dept.

2) Father & Mother's name will follow the same procedure but Death Certificate will be required... Demat dept. will advise and it will get Dematted in your Father's Demat Account

3) Only Mother's Name Certificates will be required first to be transferred to your father's name and same will need to be sent to the registrar. Procedures & any additional will be correctly advised by the Demat Dept.
From the registrar the physical certificate shall come back duly transferred in your Father's Name which then can be submitted along with DRF as outlined in point (1)

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Only Your name & Your name with Mother

Will require a Demat account only in your name as 'Sole Holder'

Point (1) & (2) Is the procedures to be followed.

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Your father's name & Yours

There are two ways of doing this

First Way is to send the Certificates to be transferred in your name & then you can Demat it in your Demat account where you are the 'Sole Holder'

Second Alternative is open a Demat account where your father is the 'First Holder' & You are the 'Second Holder' and fill up the required DRF for Dematting to the Demat account.

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Your Husband's Demat account would be of no use in all this.

My apologies in advance for this unsolicitated suggestion - keep your things with you & in your control... you can always nominate your husband or kids as beneficiary

Happy & Safer Investing

SavantGarde

Okay.

What I have understood is that I need to open the following demat accounts:
Case 1: Father's Name, Father & Mother, & Only Mother
1. My father's name (sole holder)

Case 2: Only My name & My name with Mother
2. Mine's name (sole holder)

Case 3: My father's name & My name
3. My father's name (first holder) and in my name (second holder)
(second alternative in your post)

Can all these demat accounts be linked with my husband's savings account? (as I don't want to open another savings account).

Please confirm.

Yes your understanding is as far number Demat accounts that would be required.

You father's Demat account cannot be linked to anybody's savings account except his own, whereas your Demat account can be linked to your jointly held savings account with your husband.....

Necessity for Bank account proof for Demat Only is because Dividends get directly credited to the bank account.

There is a 9 digit code after the cheque number wherein the first 3 digits denotes the City, second 3 digits denote the Name of The Bank and the last 3 digits indicates the Branch of the bank.... It is called MICR code.

Happy & Safer Investing

SavantGarde

dear kabita, (with apologies to sawantji for intervention)

You have stated 4 cases

1. one is shares in father's name

(I am assuming you want to open a d-mat account in your name (singly) or you want to open a demat account in your spouse or childrens name (singly). For simplicity, i assume all the shares you hold has to be in your name and and you will be trading them after getting them tranferred in your account)

Trading in shares you need three types of accounts

1. Bank account (A savings bank account where you hold money that is to be used for trading. The same account will be used by you to tranfer your sale proceeds received from broker when you sell shares)

2. Demat account (Account in which your shares are held in electronic form, you can trade most of your shares only if they are in electronic form)

3. Trading account (An account with broker - when you buy shares, actually a broker buys it on your behalf, so you need to tranfer money from your bank account to broker account for buying them. same way when you, your broker sells it on behalf of you, so he need to be authorised by you to take shares lying in your demat account.)


So you have to open all these three accounts (either in your name or spouse name or children - but it has to be in single name for facilitate trading). Again I assume that you have open all the three accounts in your name

Now let us come back to your original question

1. Shares in your a) fathers name

I this case you have obtain a share transfer form, along with the requisite stamp (you have check some broker for the amount of stamps required in each share certificate you hold) and original certificates, send them to registrar of the individual companies on which your father hold the shares.
registrar will send you the share certificates duly transferred in your name around a months time. Once such certificates are tranferred in your name, you can deposit them in your d-mat account.

b) shares jointly held in your fathers name & mothers name

I will come this later

c) shares held in your mothers name singly

you have to be obtain certain legal formalities in this regard. you have to get the death certificate, legal heirship cerificate, succession certificate from the local authorities like panchayath/taluka
once you have obtained such certicates, you can tranfer the certicate to your name again sending it the registrar along-with these certificates and also a consent letter from all the legal heirs of your mother. (This takes a little more time and follow-up)

I hope you must have understood the answer for b) by now.In the share tranfer request your father must sign along with documents mentioned above


case 2. a)shares held in your name

you have submit the original share certificates along with de-mat reqest with you DP
b) share held in your mother's name & you jointly

You have to get them tranferred to your name singly from registrar by submitting the tranfer form as mentioned above.


case 3. certificates held in your and your father's name jointly

They can be converted to your demat account by filling up de-mat form along with the consent letter from your father.


I have tried to give you a solution based on my experiences, which may not be shortest on easiest. If the amount involved in small, it is better to forgo, as procedures i described above is really tedious and time taking (in my place)

This is very good information but I have a problem which may complicate things a little more. Before the demat era my father bought a lot of stocks in different variations of the same name.For eg Rajesh, Rajesh A K, Rajesh K, .

In some cases stock was bought where First name only or even first name with initials not spelled out. What is the best way to demat these stocks ? My guess is the issue will arise with verification of the names. Has anybody else done this. Any suggestions on the best way to do this ?