what is meant by dematerialization
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Dematerialization (DEMAT) is the move from physical certificates to electronic bookkeeping. DEMAT accounts are required by some trading institutions due to the fact they are the most accurate form of record keeping. Dematerialization was designed to offer more security, as well as increased speed, to financial trades.
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Dematerialisation is the process by which a client can get physical certificates converted into electronic balances. An investor intending to dematerialise its securities needs to have an account with a DP. Holdings in only those securities that are admitted for dematerialisation by NSDL can be dematerialised.
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