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Question 29 of 33

Q.Explain the following term/concept.
Dematerialisation

Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2026Subjective· 2mImportance★★★★★
88% · 29/33 Questions
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Dematerialisation is the process by which an investor's physical securities certificates are converted into equivalent electronic form and credited to his demat account with a depository.

Holding securities in paper form caused problems such as loss, theft, forgery, damage and delays in transfer. Dematerialisation solves these by holding securities electronically. The investor submits his physical certificates along with a Dematerialisation Request Form (DRF) to his Depository Participant (DP).

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