In case you intend to sell the shares, then dematerialization is mandatory. In fact, even if you don’t intend to sell immediately, it is better to dematerialize these shares so that you are able to monetize the shares even without selling them. In that case, a simpler method is to opt for transmission-cum-demat or TCD where dematerialization happens along with transmission.From 2019 onwards, Sebi mandated that investors who want to transfer shares held in physical form after 1 April, then those shares are to be first dematerialised even as the investor can continue to hold the shares in physical form even from 1 April. To sell and transfer, you will have to convert it into Demat form
CAclubindia
