Question

Explain the following term/concept: Rematerialization

Hint:

Think of it like this: Dematerialization is like converting your physical cash into a digital bank balance. Rematerialization is like going to the ATM and withdrawing that digital balance back into physical currency notes.

Answer 1

Meaning: Rematerialization (often shortened to 'Remat') is the process of converting securities that are held in an electronic form (dematerialized form) in a Demat account back into their physical form, i.e., as physical share or debenture certificates. It is the exact opposite of Dematerialization (Demat). Process: An investor who wishes to rematerialize their securities must submit a Remat Request Form (RRF) to their Depository Participant (DP). The DP then forwards this request to the concerned depository (NSDL/CDSL) and the company's Registrar and Transfer Agent (RTA). After verification, the company's RTA prints and dispatches the physical certificates to the investor, and the electronic holdings in the Demat account are reduced accordingly. Why it's done: Although trading on stock exchanges requires shares to be in Demat form, an investor might choose Remat for personal record-keeping, to pledge physical shares for a loan where Demat is not an option, or for other specific personal reasons.