ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is dematerialisation? Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the BO’s account with his DP.

Detailed explanation-2: -The process of holding securities in an electronic form is called dematerialisation. For this, the investor has to open a demat account with an organisation called a depository.

Detailed explanation-3: -What is dematerialization? The process by which the physical share certificates of a company are converted to an electronic form is what is commonly known as the dematerialization of shares. These dematerialized shares are then held in an online Demat account that you open with a depository.

Detailed explanation-4: -While Dematerialization is the process of converting physical shares into electronic form, Rematerialization is the process of reconverting electronic shares to physical certificates.

Detailed explanation-5: -While the process of converting physical shares into digital copies is called dematerialisation, the conversion of stocks back into physical format is called rematerialization.