Question

Distinguish between the following:

Dematerialization and Rematerializotion

Answer 1

Points	Dematerialization	Rematerialization
Meaning	Process of converting Physical certificates of securities into electronic form.	It is the process of conversion of electronic form of securities into physical form.
Conversion	Here, the paper form of securities is converted into digitally/ electronically held securities.	Here, the electronic records are converted into physical/paper-form securities.
Use of Form	It uses 'DRF': Viz. 'Dematerialization Request Form' from Investor to the DP.	It uses 'RRF': viz Rematerialization Request Form’ from the Investor to the DP.
Sequence	This is an initial process. It is a primary and Principal function of the depository.	This is a reverse process. It is a secondary and supporting function of the depository. Already demated securities are remated.
Identification of Securities	Demated securities have no distinctive numbers. They are fungible.	Remated securities will have certificates and distinctive numbers as issued by the company.
Securities Maintenance Authority	The depository is the custodian of securities and records.	The issuing company is the record-keeping authority. Securities are maintained by the investor.
Difficulty of Process	Demat is an easy process. Also, it's not a time-consuming process.	Remat is not only a time-consuming but also a complex process.