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<br>Dematerialisation is the process by which a client can get physical certificates converted into electronic balances. An investor intending to dematerialise its securities needs to have an account with a DP. The client has to deface and surrender the certificates registered in its name to the DP.
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Dematerialisation of Securities What is the Dematerialisation of Securities? Benefits of dematerialization of shares
What is the Dematerialisation of Securities? • Prior to the internet, it was considerably harder to acquire and sell shares and other securities. The procedure of physically purchasing stocks from a broker was time-consuming and difficult. All actual shares and securities must now be digitally transformed and kept in a demat account under a depository. Dematerialization of securities is the process at issue. Dematerialization aims to make it easier, more dependable, and less expensive to acquire, sell, transfer, and hold shares.
Benefits of dematerialization of shares • Enhanced safety: You won't have to be concerned about your share certificates being lost, stolen, misplaced, or damaged because dematerialization involves converting physical shares into electronic ones. All of your shares can be safely kept in one Demat account that is accessible from practically anywhere in the world. • Increased security: Forgery, fraud, and duplication were widespread when actual share certificates were still in use. All of these scenarios are impossible with dematerialized shares. • Facilitation of instant transfer: It would typically take several days to transfer shares using physical share certificates. But share dematerialization has made share transfers exceedingly easy and practically immediate.
