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There was a time when the Indian stock market followed the open outcry system, and the default trading method was through physical certificates. Conventionally, this resulted in a large amount of paperwork for traders and investors. It also contributed to the associated risks of dealing with physical copies.
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Dematerialisationand Rematerialisation What Is Dematerialisation and Rematerialisation? between dematerialisation and rematerialisation
What Is Dematerialisation and Rematerialisation? • What Is Dematerialisation? Dematerialization is the process of converting paper share certificates and debentures into electronic forms. The name "demat" in Demat accounts stands for dematerialization because investors primarily utilise the account to keep virtual dematerialized shares and securities. If you want to dematerialize your securities, you must talk with a Depository Participant (DP) to open a demat account in India. The National Securities Depository Limited (NSDL) and Central Depository Services Limited are the two depositories that the DPs use to open Demat accounts in India (CDSL). What Is Rematerialisation? Rematerialization is the process of converting digitally held securities into actual certificates. The rematerialization process is an option for investors who have converted their shares or have them retained in electronic format in Demat accounts. Nevertheless, while assets are being rematerialized, investors cannot trade them on the appropriate market.
Dematerialisationand Rematerialisation • The followings are the difference between dematerialisationand rematerialisation:
