De-materialization is the conversion of a share certificate from its physical form to electronic form for the same number of holding which credited to your dematerialization account which you opened through a depository participants. De-materialization is a process by which the company takes the physical share certificates of an investor back and an equivalent number of securities are credited in electronic form to the depository. Depository is an organisation where the securities of a shareholder are held in electronic form.
Re-materialization is a process by which a shareholder can get his holding converted back into physical form of share certificate. Benefits of De-materialization to investors: A safe and convenient way to hold securities. The depository system reduces risks involved in holding physical certificates e.g. Loss, theft, mutilation, forgery, etc. It ensures transfer settlement and reduces delay in registration of shares. It ensures faster communication to investors. It ensures faster payment on sales of shares. It provides more acceptability and liquidity of securities.
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