Dematerialization is a process where all the being documents are converted to electronic documents and are held in the Demat account. The depository is solely answerable for maintaining all the electronic documents.
The process of dematerialization
The process starts in the manner of initiation a Demat account.
You habit to fill a dematerialization demand form that is to hand in the depository participant.
Once the demand is attributed every the combined instinctive documents will be destroyed and the proclamation of dematerialization will be sent to the depository.
Again a sworn statement is sent assist from the depository to the depository participant and after that it will be reflected in the account electronically.
The combine process will undertake 15 to 30 days to unquestionable from the date of assent of the demand form.
In order to carry the entire sum process one should compulsorily possess a Demat account else this is not feasible at all.
Why was dematerialization needed?
Handling of direction that is joined to shares, invoices etc. is getting difficult day by day. following they are huge in number it is certainly difficult to increase and manage. That is why people started getting every documents in electronic format. Even we can see fiscal dematerialization of invoices (dématérialisation fiscale des factures) in many companies.
Tracking of the book is enormously difficult when instinctive documents. Especially if we want to track history that are generated several decades support is truly a hectic one. so keeping cutting edge in mind, right now we are focusing more on dematerialization. This is the infatuation of the hour and afterward it is agreed eco-friendly as the paper usage is maximum reduced behind dematerialization. thus we as a held responsible citizen should keep dematerialization.