InvestorQ : Does demat account do away with certificates altogether?
Tisha Malhotra made post

Does demat account do away with certificates altogether?

Answer
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Aashna Tripathi answered.
2 years ago


Demat does away with cumbersome physical certificates. This was the big challenge in the physical trading era. There was the risk of bad delivery, attaching transfer forms, risks of signature mismatch, having a complete team to handle physical certificates etc. Demat does away with all that. When you dematerialize the shares, the physical certificates are destroyed and it is converted into a electronic credit into your demat account. Unlike physical certificates, demat shares do not have unique distinctive numbers or folio numbers although the certificate data is still maintained in the data master. Let us also look at Rematerialization in this context. Check the form below…
The above Remat form can be used to rematerialize your shares back to physical form. It is not all that complicated. The most important is the Remat Request Number (RRN), which is something you will have to keep record of since it can be used to follow up with your DP and the registrar in case of any complaints or data mismatch. The moral of the story is that, once you have dematerialized the share certificates it is not the end of the physical certificate. You can always opt to rematerialize the shares