Q.Distinguish between the following:
Dematerialization and Rematerializotion

Dematerialisation turns physical share certificates into electronic form so they can be held and traded in a demat account, while rematerialisation does the reverse — it turns electronic holdings back into printed physical certificates. They are opposite processes carried out through the depository and the Depository Participant (DP).

Under the depository system, securities are normally held in electronic form. Dematerialisation (Demat) is the process by which an investor surrenders his physical share certificates to the Depository Participant, who forwards them to the company/registrar. The certificates are then cancelled and an equal number of securities are credited in electronic form to the investor's demat account. This removes the risks of theft, loss, forgery and delay associated with paper certificates.

Rematerialisation (Remat) is the exact opposite. Here an investor who holds securities in electronic form requests that they be converted back into physical certificates. The DP forwards a rematerialisation request to the depository and the company, the electronic balance is debited, and physical certificates are printed and sent to the investor.