- December 26, 2018
- Posted by: Rajeev Enterprises
- Category: Shares
What are Physical Shares?
Physical Shares are material form of regular shares you know about. Physical shares are the certificates issued to an investor. These certificate grant authority of those shares and its value to the share buyer. Physical shares are same as regular shares but they are not listed in the stock market unless the buyer wants to get them dematerialized.
Physical shares are usually popular in the 90s, unlike today when you sell or buy shares the broker insists on dealing in dematerialised shares only.
Dealing in physical shares is a time taking and tiring process, and hence investors tend to sell off their old physical shares and invest in the dematerialised form of shares.
Difference between Physical Shares and Demat Shares?
Physical shares and Demat shares are the same in terms of its value in the stock market. The major difference between Physical shares and Demat shares lies in its process of dealing.
An investor holding Physical shares do not require to have a Demat Account on his/her name. Whereas Demat Shares holder needs to have a demat account on his/her name, which is a mandatory regulation.
Physical Shares for Investors
Investor dealing in Physical shares or Physical form of shares don’t need to have a Demat Account unless the investor wants to sell or convert the Physical Shares.
To have the physical shares dematerialised investor needs to open a demat account and also need to get into an agreement with the depository participant. The investor then needs to submit or surrender the physical shares certificate to the company which issued the certificate. The investor then needs to give details of the agreement with the depository participant.
After all this process the company will issue a receipt for the shares. Depository participant (DP) popularly known as a broker will register the investor as the beneficial owner of those shares.
On the receipt of the shares investor has surrendered to the issuing company, DP or the broker will send an electronic request to the company’s registrar and the share transfer agent.
Company’s registrar and share transfer agent will verify the DP and the Investor on the basis of the documents provided during the surrender of physical shares and the document submitted during the Demat account opening process. After complete verification, DP or the broker will receive a confirmation based on which DP will credit your account with the shares in its Demat form.
Buying & Selling Physical Shares
To buy and sell physical shares, the investor needs to get in touch with a Depository participant who can sell or buy them in physical form or get them converted into a Demat form for further dealing. Depository participant or DP can be a bank or broker. The investor can choose any broker as per the comfort or service quality.
Top Brokers for Buying and Selling Physical Shares
It is always suggested to choose top brokers for buying and selling of physical shares. A broker is the Depository participant for your Demat account why you wish to buy or sell Physical shares and even Demat Shares.
Rajeev Enterprises is a leading brokerage firm in Delhi. Rajeev Enterprises deals in Physical Shares and Unlisted Shares. Rajeev Enterprises is a reliable DP for the Demat Account you can trust on. this firm is operation from Delhi for last many years.
If you are looking for Physical Share Buyer in Delhi contact Rajeev Enterprises at +91 9716 941 383