Dematerialisation

Dematerialisation is the ferment of converting the somatogenic determine of divisions into electronic form. Prior to dematerialisation the Indian stock markets have set about several problems manage reign up in the designate of certificates, forgery of certificates etc. Dematerialisation helps to pommel these problems as well as reduces the transaction time as compared to the carnal segment. The article discusses the procedures, advantages and problems of dematerialisation. The Indian Stock markets have seen a major(ip) change with the introduction of eitheruviation outline of rules and scrip less life history mechanism. There were various problems like inordinate delays in the alter of share certificates, delay in receipt of securities and inadequate metrical foot in banking and postal segments to enshroud a large caboodle of application and storage of share certificates .To overcome these problems corporal dealing in securities should be eliminated . The Indian stock market introduced the system of dematerialisation recognizing the need for scrip less trading. accord to the Depositories Act, 1996, an investor has the option to hold shares all in physical or electronic form .The knead of converting the physical form of shares into electronic form is called dematerialisation or in short demats.

The converted electronic data is stored with the deposit from where they git be traded. It is similar to a bank where an investor opens an note with some(prenominal) of the depository participants. Depository participant is a representative of the depository .The DP maintains the investors securities aim balances and intimates him about the status of holdings. Procedure for converting the physical shares into electronic form. To convert the shares into electronic form the investor should open an work out with any of the depository participants. For interruption an account the investor has to fill up the account opening form. An account number (client ID) will be allotted after write the agreement which...If you want to fill a full essay, army it on our website: Ordercustompaper.com

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