Even after the dematerialization of shares became the new norm two decades before, retail investor category is said to held 2.3% or $2 trillion plus market cap in physical format. Now, as per the revised rules per se the Listing Obligations And Disclosure Requirements or LODR all of the investor categories are mandatorily required to convert physical share scrips to dematerialized form.
The guidelines mandate retail investors in listed companies willing to transfer or sell shares to effect the conversion to demat form maximum by December. As per reports still many investors and especially senior citizens are known to held shares in physical certificate form.
As per the recent tweak made to the LODR, it is suggested that except for the transmission or transposition of securities, the request for stock transfer shall not be made unless the stock is held in dematerialized format.
Even after 7 years of SEBI's mandate to held shares in demat form, still a large chunk by long-term retail and institutional investors is held as physical certificates.
NSDL and the CDSL via their registered DPs or depository participants maintain investors' shares in demat form.