Difference Between Dematerialisation and Rematerialisation
The word "Demat" is familiar to anyone who has even a basic interest in the financial markets . However, have you wondered what it actually stands for? Demat is short for "a dematerialised account" and comes from the concept of dematerialisation. Another commonly used word is rematerialisation, also used in the context of the markets. So, what do the two words mean, and what are the differences between the two? Why is it important to distinguish between dematerialisation and rematerialisation? In previous times, before most financial (rather, all by now) services went online, investors held stocks and shares of a company in the form of paper certificates. These physical holdings were prone to wear and tear and even loss. Several senior citizens and other investor groups would occasionally misplace a share certificate. Duplicate share certificates were hard to come by, with tedious paperwork involved. With dematerialisation, investors could convert their phy...