Difference Between Dematerialisation and Re-materialisation

Difference Between Dematerialisation and Re-materialisation

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Dematerialization allows investors to convert physical stocks into the best Demat account, while the reverse rematerialization process converts electronic or digital securities into tangible physical certificates. Here are the main differences between dematerialization and rematerialization:

Rematerialization: This involves approaching DP, obtaining physical share certificates and deleting the electronic securities in the best demat account.

Process:

Dematerialization: Unique process of converting physical stocks into demat.

Rematerialization: Investors can revert to physical certificates at any time after dematerialization, allowing for multiple cancellations. Use top trading app India for your ease.

Management:

Dematerialization: Custodian banks like NSDL and CDSL manage and hold dematerialized shares. Use top trading app India for your ease.

Rematerialization: Issuers of physical stock certificates are responsible for the custody of the rematerialized securities.

How do you dematerialize physical stock certificates?

The dematerialization process in India has significantly reduced the risks associated with physical stock certificates while increasing the efficiency of buying and selling securities. Here are instructions on how investors can dematerialize their physical stock certificates:

Select a custodian bank participant (DP):

Before opening a demat account, choose an experienced DP or broker who offers unique features like a paperless demat process, a user-friendly interface, an affordable fee structure and a unique trading platform.

Open the best Demat Account:

Investors need to open a demat account with a DP registered with NSDL or CDSL.

Download Physical Certificates:

Submit the physical share certificates to the DP and obtain a Demat Application Form (DRF) containing details of the investor’s best Demat account, securities to be dematerialized and other relevant information. Use top trading app India for your ease.

Check:

Upon receipt of the completed dematerialization application form, the PD initiates a verification process to ensure the accuracy of the physical certificates.The certificates are then forwarded to the commercial register for further verification. Use top trading app India for your ease.

Deletion:

The Registrar shall review and revoke physical certificates, rendering them invalid for the purposes of claiming ownership. Use top trading app India for your ease.

Credit:

Upon cancellation, the Company shall credit the relevant electronic shares to the best demat account of the investor.

By following these steps, investors can go through the dematerialization process seamlessly, ensuring a secure transition from physical to electronic shares in their dematerialized accounts. Use top trading app India for your ease.

Documents Required to Convert Physical Share Certificate into Demat

SEBI has mandated furnishing of certain documents for successful conversion of physical shares into demat shares. Here are the documents required for converting physical shares into the best Demat account in India.

Proof of identity by producing photo ID such as driving license, voter ID card, PAN card or Aadhar card. Use top trading app India for your ease.

Proof of residence by presenting documents such as driving license, passport, electricity, gas, telephone bills, copy of insurance, rental agreements, etc.

Proof of financial situation by presenting a savings account or bank statement from the last three months. Use top trading app India for your ease.

The originals of all physical documents relating to the shares must be in good condition and contain clearly visible information. Use top trading app India for your ease. Use top trading app India for your ease.

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