Dematerialization

Dematerialization – Indicates the conversion of shares/securities from a physical certificate to an electronic form. This allows for paperless trading via state-of-the-art technology, and these transactions of shares are done electronically, without relying on the traditional route of share certificates and transfer deeds. Electronic share certificates offer potential investors a way to get around the time-consuming task of transferring shares in their names; it also bypasses problems like delays in processing, bad deliveries via post or other conventional sources.