Dematerialization and Rematerialization

Dematerialisation

It is a process of conversion of physical shares certificates into electronic form. So, under dematerialization facility, company take back the shares, through depository – system and equal number of shares are credited in account in e-form, physical share certificates converted into e- records. Firstly shares are dematerialize, so it is primary and principal, In this process it requires “Dematerialization Request Form”

Rematerialisation

It is a process of conversion of electronic shares into physical shares. When a beneficial – owner opt out of a depository, he will inform about it, to the company, through depository. The company will issue fresh share – certificate to the beneficial – owner, within 30 days from the date of request. In this, e- records are converted into physical – shares certificate. Firstly shares are Dematerialize then it is rematerialize, so it is secondary and supporting function of depository. In this process it requires “Rematerialisation Request form” (RRF).

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