Explain the following: Dematerialization
CS Executive · Securities Laws and Capital Markets · PYQS · December 2018
Explain the following: Dematerialization
Answer & Explanation:
Dematerialization is a process by which the physical share certificates of an investor are taken back by the Company and an equivalent number of securities are credited to his account in electronic form at the request of the investors. Dematerialization of shares is optional and an investor can still hold shares in physical form. However, he/she has to demat the shares if he/she wishes to sell the same through the Stock Exchanges.
Topics: Securities Market
Related Questions in this Topic
- "Investment in securities market involves a number of risks. An investor should analyze and assess the risks." Explain v...
- Write short notes on the following: Key risk in investing in Securities Market
- Explain the following: Fungibility.
- "The Stock Exchanges have a vital role to play in development of a country in general, and industrial growth of companie...
- Every intermediary of securities market has to apply to SEBI for grant of certificate to act as intermediary. Describe v...