Write notes on Dematerialization.

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 in his account in electronic form at the request of the investor. An investor will have to first open an account with a Depository Participant and then request for the dematerialization of his share certificates through the Depository Participant so that the dematerialized holdings can be credited into that account. This is very similar to opening of a bank account. 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. Similarly, if an investor purchases shares item the Stock Exchange, he/she will get delivery of the shares in demat form. Odd lot share certificate can also be dematerialized.