Dematerialization of Shares (DEMAT)
Dematerialisation is the process of transferring physical shares into a digital account, known as a Demat account, which simplifies managing and trading shares. Converting physical shares to Demat enhances security, reducing the risks associated with physical shares like loss or theft. It also makes trading faster and more efficient and simplifies share management. Previously required mainly for public companies, the dematerialisation process is now mandatory for private limited companies.
Dematerialisation refers to the process of converting physical securities, such as share certificates and other documents, into electronic format. These securities are then held in a demat account.
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