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Dematerialization
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Rematerialisation
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1.
Meaning: -
The process in which shares in the
physical form are converted into electronic forms called dematerialization of
the shares.
2.
Account of
shares: -
On dematerialization of shares, the
account of the shares, the account of the shares in electronic form is
maintained in the demat account by Depository Participant.
3.
Conversion:-
Shares are converted from original
physical form into an electronic form.
4.
Option:-
Recently the SEBI made
dematerialization compulsory for those shares and securities which are often
traded on a large scale.
5.
Possession of
shares: -
Due to dematerialization, the actual
possession of shares and security passes from the investor to DP.
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1. The process in
which the shares in an electronic form are converted again into physical form
is called Rematerialisation.
2. On
rematerialisation of shares, the account of the shares in physical form is
maintained by the company.
3. Shares are
converted from an electronic form again into physical form.
4. The process of
conversion of shares from the electronic form again into the physical form is
still optional and involuntary.
5. Due to
rematerialisation the actual possession of shares and security passes from DP
to the investor.
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Dematerialization Rematerialisation
