Dematerialization: This is when the physical share or debenture certificate is converted to an electronic format. It is easier to manage investments in securities and shares when all certificates are in electronic form. This reduces fraud and forgery that used to be rampant in the absence of electronic records. The electronic records in the case of dematerialisation are kept at a depository. The Indian National Securities Depository Limited (NSDL), and the Central Depository Services (Indian) Ltd (CDSL are authorized depositories.
Rematerialisation Any investor who has converted securities or debenture certificate to electronic formats can choose to convert them back to physical form. Rematerialization is a way to avoid having to pay the maintenancefee for a Demat account with only 1 or 2 shares. This is the conversion of all securities in electronic form to physical certificates. To request a Remat Request Form, (RF), you will need to complete it and send it to the Depository Participant.
|Significance||Transform physical shares and debentures certificates into electronic form||Conversion of electronic records to paper (physical form)|
|Identification of Shares||Shares dematerialized do not have a distinct amount||They have distinct numbers that were issued by the RTA|
|Transaction Mode||All transactions are done electronically only||All transactions post-rematerialisation take place physically|
|Account Maintenance Authority||Account maintenance is handled by the Depository participant (NSDL/CDSL).||Account maintenance is the responsibility of the company|
|Maintenance costs||Maintenance fees range from Rs. 500 to Rs. 500 to Rs. 500 and Rs.||Physical certificates are free of maintenance fees|
|Security||There are very few threats to the digital form.||The threat of fraud and forgery to physical paperwork is greater|
|Difficulty||It is simple to dematerialize. It is an integral part of share trading. Nearly all investors have experienced it once.||Rematerialization is a complicated process that can take a while. This is a difficult process that may require expert assistance.|
Rematerialisation processes and dematerialisation are diametrically opposed to each other. Rematerialisation is simply the reverse of dematerialization.
You will need a Dematerialization Request Form (DRF) to convert any physical share, debenture certificate or other form into an electronic format.
You will need the Remat Request Form (RF) to receive the dematerialized securities in their original form. This is a quick overview of the rematerialization process.
In fact, the process of selling and buying dematerialized securities is identical to that of selling and buying physical securities. This is a quick overview of the selling and buying processes
Transactions are now easier and more seamless thanks to dematerialization. This has reduced fraud and forgery risks and opened up the market to small investors and new traders.