Name Change in Share Certificates and Procedure for Dematerialisation of Shares

Investors often face challenges when there is a mismatch or change in the name appearing on physical share certificates. Such discrepancies can arise due to marriage, spelling errors, legal name changes, or transmission of shares after the death of a shareholder. In today’s securities market, where most holdings are maintained electronically, correcting the name and completing the procedure for dematerialisation of shares becomes essential.

This detailed blog by Investorlink explains the name change in share certificates, reasons for name correction, documents required, step-by-step procedure, and how it links with the dematerialisation process in India.

Understanding Name Change in Share Certificates

A name change in share certificates refers to the process of updating or correcting the shareholder’s name recorded in company records and on physical share certificates. This ensures consistency with identity documents and enables smooth trading, transfer, or transmission of shares.

Common reasons for name change include:

• Change of surname after marriage
• Spelling mistakes or typographical errors
• Change in name through gazette notification
• Transmission of shares to legal heirs

Unless the name is correctly updated, companies and Depository Participants (DPs) may reject dematerialisation or transfer requests.

Why Is Name Change Important Before Dematerialisation?

Dematerialisation is the process of converting physical share certificates into electronic form held in a demat account. For successful dematerialisation:

• The name on the share certificate must match the name in the demat account
• Any mismatch requires prior correction or proper supporting documents

Therefore, resolving name discrepancies is a critical step before initiating the procedure for dematerialisation of shares.

Documents Required for Name Change in Share Certificates

The documents vary depending on the reason for the name change. Commonly required documents include:

• Original share certificates
• Request letter for name change
• Self-attested PAN card
• Aadhaar or a passport for identity proof
• Marriage certificate (in case of name change after marriage)
• Gazette notification (for legal name change)
• Affidavit for name correction
• Specimen signature
• Demat account details

For transmission cases, additional documents like a death certificate and legal heir proof may be required.

Step-by-Step Procedure for Name Change in Share Certificates

Step 1: Identify the Type of Name Change

Determine whether the change is due to spelling correction, marriage, legal name change, or transmission. This helps in preparing the correct set of documents.

Step 2: Submit Request to the Company or RTA

A written application along with supporting documents must be submitted to:

• The company’s Registrar and Transfer Agent (RTA), or
• The company directly, if no RTA is appointed

Step 3: Verification by RTA

The RTA verifies documents, signatures, and identity proof. If documents are complete, the request is processed.

Step 4: Issuance of Updated Records

Once approved, the company updates its records. In some cases, fresh share certificates with the corrected name may be issued.

Procedure for Dematerialisation of Shares

After completing the name change in share certificates or ensuring proper documentation, investors can proceed with dematerialisation.

Step 1: Open a Demat Account

The investor must have an active demat account with a registered Depository Participant (DP).

Step 2: Submit Dematerialisation Request Form (DRF)

The DRF is filled and submitted to the DP along with the original physical share certificates.

Step 3: DP Verification

The DP verifies the details, including:

• Name matching
• Share certificate authenticity
• Client account details

Step 4: Forwarding to Depository and RTA

The DP forwards the request to the concerned depository (NSDL/CDSL) and RTA.

Step 5: Confirmation and Credit of Shares

After verification, the shares are credited electronically to the investor’s demat account, and physical certificates are cancelled.

Common Issues During Dematerialisation

Investors may face delays or rejection due to:

• Name mismatch between the certificate and the demat account
• Signature mismatch
• Incomplete documentation
• Old or damaged share certificates

Proper handling of the name change process significantly reduces these risks.

SEBI Guidelines on Name Change and Dematerialisation

SEBI has streamlined processes to protect investor interests by:

• Mandating KYC compliance
• Requiring PAN linking for demat accounts
• Encouraging dematerialisation of all physical shares

As per SEBI regulations, most transfers of securities are now allowed only in demat form, making dematerialisation crucial.

Importance of Professional Assistance

The combined process of name change in share certificates and procedure for dematerialisation of shares involves coordination with RTAs, DPs, and compliance with regulatory norms. Errors can lead to repeated rejections and long delays.

Professional service providers like Investorlink help investors by:

• Reviewing documents for accuracy
• Handling end-to-end coordination with RTAs and DPs
• Ensuring compliance with SEBI and depository guidelines
• Reducing turnaround time and stress

Frequently Asked Scenarios

• Name change after marriage: Requires a marriage certificate and an affidavit
• Minor spelling correction: Usually resolved with an affidavit and ID proof
• Transmission cases: Requires a death certificate and legal heir documents before dematerialisation

Each scenario has specific compliance requirements that must be addressed carefully.

Conclusion

Correcting the name change in share certificates and understanding the procedure for dematerialisation of shares are essential steps for modern investors holding physical securities. With SEBI emphasising electronic holdings, resolving name discrepancies ensures smooth demat conversion, easy transfer, and better portfolio management.

With expert guidance and structured support from Investorlink, investors can complete both processes efficiently, avoid common pitfalls, and ensure their shareholdings are fully compliant with current regulatory standards.