Common reasons for Demat Request Form rejection and how to avoid them for a smooth share transfer process
Last updated on: February 06, 2026
A Demat Request Form (DRF) is an essential document for converting physical share certificates into electronic form. It ensures smooth processing by the depository participant (DP) and the central depository. However, investors often face rejection of their DRF due to avoidable errors.
This article explains the meaning of a DRF, its role in the dematerialisation process, and the most common reasons for rejection, so that investors can ensure a hassle-free submission.
A Demat Request Form is provided by your DP when you want to convert your physical share certificates into dematerialised format. Along with the DRF, the original physical certificates must be submitted for verification.
The DP then forwards the request to the relevant Depository — either the National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL) — via the Registrar and Transfer Agent (RTA) of the issuing company.
If any detail in the form or attached documents is incorrect or incomplete, the RTA or DP may reject the request.
Understanding these common causes of dematerialisation request form (DRF) rejection can help investors avoid delays and ensure a smooth processing experience.
One of the most common causes of rejection is a mismatch between the name on the share certificate and the name registered in the demat account.
Examples:
Use of initials instead of full name
Spelling variations
Name change after marriage without updating records
Important to Ensure: Ensure that your name matches exactly across the share certificate, DRF, and demat account records. If there has been a name change, submit the required supporting documents such as a gazette notification or marriage certificate.
The signature on the DRF must match the specimen signature available with the RTA. Differences in style, changes over time, or use of different signing patterns can cause a mismatch.
Important to Ensure: If your signature has changed, update your records with the RTA before submitting the DRF. You may need to provide a bank attestation or notarised affidavit confirming your signature change.
Each security has a unique International Securities Identification Number (ISIN). If the ISIN mentioned in the DRF is incorrect, missing, or not active, the form will be rejected.
Important to Ensure: Verify the ISIN with your DP before filling in the form.
Physical share certificates that are torn, mutilated, or have unreadable details may be rejected during verification.
Important to Ensure: Ensure your certificates are in good condition. If damaged, apply for a duplicate share certificate from the issuing company before initiating dematerialisation.
There are separate DRFs for different types of dematerialisation requests — for instance, for free securities, locked-in securities, or transmission cases. Submitting the wrong type of DRF can lead to rejection.
Important to Ensure: Confirm the correct DRF format with your DP based on the nature of the shares being converted.
Missing or incomplete information such as folio number, share certificate number, or distinctive numbers can delay or cancel the request.
Important to Ensure: Fill in all required fields carefully and double-check the details before submission.
For jointly held shares, all holders must have their names in the same order as on the share certificate and their signatures must match records. Even a minor difference in order or spelling can cause rejection.
Important to Ensure: Coordinate with all joint holders to ensure uniformity in records and signatures.
If the shares are under dispute, lien, or any legal restriction, they cannot be dematerialised until the restriction is lifted.
Important to Ensure: Check with the RTA for any restrictions before submitting the DRF.
Depositories occasionally update the DRF format. Submitting an old version may lead to rejection.
Important to Ensure: Always use the latest DRF provided by your DP.
Sometimes, certificates of different ISINs or from different companies are bundled together in a single DRF, which is not permitted.
Important to Ensure: Submit separate DRFs for each ISIN and company.
Understanding the step-by-step process of submitting your DRF helps ensure smooth dematerialisation and timely credit to your Demat account.
Collect DRF from your DP.
Fill in details such as ISIN, folio number, distinctive numbers, and certificate numbers.
Attach physical certificates in original.
Sign the DRF — all holders must sign as per RTA records.
Submit to DP, who forwards it to the RTA.
Verification by RTA and approval for dematerialisation.
Credit in Demat Account after successful processing.
Before submitting your DRF, ensure:
Names match exactly across all records.
Signatures match specimen signatures with RTA.
Correct ISIN is mentioned.
DRF type matches the nature of your shares.
No legal disputes or restrictions on the shares.
You are using the latest DRF format from your DP.
A Demat Request Form is a critical step in converting physical shares into digital format. While rejections are common, they are often avoidable with careful attention to details. By understanding the frequent causes of rejection and preparing the necessary documents in advance, investors can ensure a smooth dematerialisation process.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Reviewer
A DRF is a document you submit to your Depository Participant to convert physical share certificates into electronic form. Without an accurate DRF, the dematerialisation process cannot proceed, making it an important step in share transfers.
Rejections often occur due to mismatched names, signature differences, incorrect ISIN details, damaged certificates, outdated DRF formats, or legal restrictions on the shares being processed for dematerialisation.
Check that your name and signature match across all records, confirm the correct ISIN, use the latest DRF format, and ensure there are no disputes or restrictions on your shares.
Yes. After a rejection, your DP or RTA will return the documents with reasons for refusal. You can correct the identified issues and resubmit for processing without penalty in most cases.
No. Different share categories such as locked-in, free, or transmission shares require separate DRFs. Submitting the wrong type can cause rejection, so verify with your DP before filling the form.=
A DRF, or Dematerialisation Request Form, is a document used to convert physical share certificates into electronic form. It is submitted to a depository participant along with physical certificates to initiate the dematerialisation process.
DP charges cannot be completely avoided, as they are levied by depository participants for maintaining and servicing demat accounts. However, the structure and frequency of charges may vary depending on the participant’s fee schedule.
A DRF can be obtained from the depository participant where the demat account is held. It may be provided in physical format or downloaded online, depending on the participant’s process and service availability.
DRF is used to request the conversion of physical share certificates into electronic form. It enables shares to be credited to a demat account, allowing electronic holding, transfer, and settlement in accordance with depository regulations.