Do I have to dematerialise securities that I do not intend to sell?
An investor has the option to hold securities in physical form or demat form. You are not required to dematerialse if you do not intend to sell the them.
However, holding your securities in demat form entails numerous benefits and is therefore highly recommended. Further, from April 1st 2019, you will not be able to transfer shares held in physical form using a transfer deed. The transfer will be possible only after dematerialising these physical shares.