Dematerialization - DEMAT

What is 'Dematerialization - DEMAT'

Dematerialization (DEMAT) is the move from physical certificates to electronic book keeping. Actual stock certificates are slowly being removed and retired from circulation in exchange for electronic recording.

BREAKING DOWN 'Dematerialization - DEMAT'

With the age of computers and the Depository Trust Company, securities no longer need to be in certificate form. They can be registered and transferred electronically.

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RELATED FAQS
  1. Do mutual funds require a demat account?

    Learn whether mutual funds require a dematerialized account and the requirements for dealing directly with a mutual fund ... Read Answer >>
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    Currently, most stock ownership is done electronically thru the combined effort of the brokerage firms and the transfer agents ... Read Answer >>
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