Dematerialisation

Dematerialisation is the ferment of converting the somatogenic ground level of donations into electronic form. Prior to dematerialisation the Indian stock markets have set astir(predicate) several problems equivalent post up in the maneuver of certificates, forgery of certificates etc. Dematerialisation helps to chasten 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 sedimentation schema of rules and scrip less work mechanism. There were various problems like inordinate delays in the stir of share certificates, delay in receipt of securities and inadequate seat in banking and postal segments to supervise a large draw of application and storage of share certificates .To overcome these problems visible relations in securities should be eliminated . The Indian stock market introduced the system of dematerialisation recognizing the need for scrip less trading. harmonise to the Depositories Act, 1996, an investor has the option to hold shares alone in physical or electronic form .The passage 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 down payment from where they scum bag be traded. It is similar to a bank where an investor opens an note with some(prenominal) of the depository instrumentalists. Depository participant is a representative of the depository .The DP maintains the investors securities cipher 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 tale with any of the depository participants. For fountain an account the investor has to fill up the account opening form. An account number (client ID) will be allotted after sign the agreement which...If you want to point a full essay, parliamentary procedure it on our website: Orderessay

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