{"id":467,"date":"2019-04-11T13:07:17","date_gmt":"2019-04-11T13:07:17","guid":{"rendered":"https:\/\/rta.saginfotech.com\/blog\/?p=467"},"modified":"2021-11-16T12:26:20","modified_gmt":"2021-11-16T12:26:20","slug":"differences-between-dematerialisation-rematerialisation","status":"publish","type":"post","link":"https:\/\/rta.saginfotech.com\/blog\/differences-between-dematerialisation-rematerialisation\/","title":{"rendered":"Difference Between Dematerialisation and Rematerialisation | SAG RTA"},"content":{"rendered":"\n

As you have heard that, Shares Dematerialization is necessary for share transfer any activity in relation to the shares of unlisted companies, listed companies, and soon-to-be-notified private companies, thus it becomes more imperative to know about dematerialization, rematerialization, Demat and Remat.<\/p>\n\n\n\n

If you are interested or already a part of the share market then you probably know about these terms but if you don\u2019t know about them, or want more info then this article has everything you want. <\/p>\n\n\n\n

Previously, Share Certificates were issued in physical form only, In this way, the investors had great difficulty in keeping them safe. There are always some risks such as physical damage, forgery of shares, and theft. Share certificates also had to be sent through postal mediums which took a lot of time. <\/p>\n\n\n\n

Read Also: <\/strong><\/font>Demat Account \u2013 What it is And How To Open A Demat Account Online<\/font><\/strong><\/font><\/a><\/p>\n\n\n\n

But now, to make the complete procedure hassle-free the government introduced the dematerialization process. It is a process by which the physical shares are converted into electronic form and can be stored in the demat account via the system of the depositories i.e. NSDL or CDSL. To trade in the share market the first thing you have to do is Contact with SEBI registered stockbroker<\/a> and open a Demat and trading account. These broking houses can be divided into two types, which are listed below.<\/p>\n\n\n\n

Types of SEBI Registered Stockbroker<\/h2>\n\n\n\n

Discount Brokers:-<\/strong> Discount broker allows clients to buy and sell securities but it does not provide advice, research, planning, or other investment services. <\/p>\n\n\n\n

Full-Service Brokers:-<\/strong> They provide all the guidance, research, planning, support, and other required investment services. So if you are a beginner in the field of the share market then you should go to the Full-Service Brokers.<\/p>\n\n\n\n

Read Also: <\/strong><\/font>Complete Procedure For Dematerialisation Of Shares Under RTA<\/font><\/strong><\/font><\/a><\/p>\n\n\n\n

Dematerialization<\/h3>\n\n\n\n

It is the process by which physical share certificates of an investor are taken back by the company or registrar & share transfer agent<\/strong> and then they destroy it. The equivalent number of securities in the electronic form is then credited to the investor\u2019s account with his Depository Participant.<\/p>\n\n\n\n

Basically Dematerialization process converts physical share into electronic format. The owner of these shares has to open a Demat and trading account with SEBI registered stockbroker to keep the dematerialized shares or to trade them in the share market.<\/p>\n\n\n\n

Procedure for Dematerialisation:<\/strong><\/p>\n\n\n\n