Rattan Dhillon, a Chandigarh resident, recently stumbled upon decades-old physical share certificates of Reliance Industries Ltd (RIL) while doing some spring cleaning. Initially excited by the possibility of digitising the shares, Dhillon soon realized the lengthy and bureaucratic process involved in making the switch. What he had hoped would be a simple task turned into a paperwork nightmare, leaving him disheartened and ultimately deciding to abandon the effort.
In a social media post, Dhillon shared his frustrations, stating, “It seems Dhirubhai Ambani’s signatures will go to waste, as I’ve decided not to proceed with digitising the shares. The process is just too lengthy—obtaining the legal heir certificate alone takes 6-8 months, and the IEPFA process reportedly takes 2-3 years. I don’t see the value in investing so much time. India really needs to streamline its paperwork.”
Dhillon’s post quickly sparked reactions on X (formerly Twitter), with many users disputing his claims and offering advice to help him navigate the process. One user responded, clarifying that the IEPFA process typically takes only a few months rather than the years Dhillon mentioned, saying, “IEPFA process takes a few months, not 2-3 years… For that amount, a little running around should be fine, I guess.” Others suggested outsourcing the paperwork to professionals, advising Dhillon to hire a company secretary or a lawyer to assist with the required documents, enabling him to avoid the hassle of handling it all himself.
Additionally, some users pointed out that Dhillon might not be aware of how much his shares could be worth now. With stock splits and bonus shares issued over the years, the value of his shares could have significantly increased. One user commented, “Legal heir certificate will take 1 week, IEPFA will take 6 months. Plus, these are not the only shares—Reliance had issued bonuses, so shares would have been added. Please don’t let it go to waste.”
Why the Process Takes So Long
India’s financial system has strict rules to prevent fraud in cases of unclaimed shares. The process of verifying physical shares and establishing the ownership of legal heirs can be time-consuming. The IEPFA clearance process, in particular, takes longer as it involves reviewing unclaimed investments before approving transfers.
However, experts suggest that the right professional help can significantly speed up the process. A company secretary or a lawyer can handle much of the paperwork on behalf of the shareholder, helping to reduce the time and effort required to complete the necessary steps.
Dhillon’s Decision
For now, Dhillon has decided to leave the physical certificates untouched and not pursue the digitisation process. However, given the strong encouragement from social media users and legal experts, he may reconsider his decision. The overwhelming response has highlighted a critical issue in India’s financial system: the need to streamline the share digitisation process to make it more accessible and investor-friendly.
Dhillon’s story sheds light on the frustrations many investors face when dealing with physical share certificates and the bureaucratic hurdles that can stand in the way of digitising these valuable assets. As more individuals discover the value of their old, physical shares, there is hope that India’s financial system will evolve to make the process more efficient and hassle-free for investors.
