Q.4 (3) Distinguish between Dematerialization and Rematerialization.
Best answer
Answer: Distinction between Dematerialization and Rematerialization
| Point | Dematerialization | Rematerialization |
|---|---|---|
| Meaning | Conversion of physical share certificates into electronic form. | Conversion of electronic holdings back into physical certificates. |
| Request form | Demat Request Form (DRF) given to the DP with certificates. | Remat Request Form (RRF) given to the DP. |
| Result | Holding is credited to the investor's demat account. | Holding is debited from the demat account and certificates are issued by the company/RTA. |
| Benefits | Safe, quick, paperless transfer; no loss, theft or forgery. | Gives physical certificates to the investor, but with the risks of paper holding. |
| Trading | Securities can be traded on stock exchanges easily. | Physical securities cannot be traded on exchanges until demated again. |
| Popularity | Very common; compulsory for trading listed shares. | Rarely used. |
Log in or create a free account to answer this question.
