Infinysolutions

  In 1996 dematerialization was introduced in the Indian financial market and the Securities and Exchange Board of India (SEBI) mandated the companies to only share the dematerialized form to mitigate the risks associated with share trading in physical share certificates. India adopted the dematerialization System successfully. Ever since the introduction of dematerialization, the possession of physical share certificates has rapidly declined. What is Dematerialization? Dematerialization is the process of converting physical shares certificates of a company into electronic format. An investor who is interested to dematerialize his shares needs to open a dematerialization account with Depository Participant. The investor submits his physical shares and gets his physical shares into electronic shares in his Demat account. Storage of Dematerialised Shares – Depository The depository is the body that is responsible for storing and maintaining investors’ securities in dematerialized or ele