The methodology used for storing the certificates are either dematerialisation or immobilisation. Explain.

Dematerialisation Dematerialisation is the process of converting physical shares into electronic format. An investor who wants to dematerialise his shares needs to open a demat account with Depository Participant. Investor surrenders his physical shares and in turn gets electronic shares in his demat account. This type of system is cost effective and simple and has been adopted in India. In 1996, trading began on NSE for shares held in demat account form. It was the beginning of a new paperless trading stock market trading environment. Immobilization In case of Immobilization physical share certificates are kept in vaults with the depository for safe custody. All subsequent transactions in these securities take place in book entry form. The actual owner has the right to withdraw his physical securities as and when desired. The immobilization of fresh issue may be achieved by issuing a jumbo certificate representing the entire issue in the name of depository, as nominee of the beneficial owners.