DEMATERIALIZATION OF SHARES (DEMAT)
Dematerialization also known as demat is the process of converting physical shares into electronic format. An investor who wants to dematerialize his shares needs to open a demat account with a CDSL / NSDL which are the Depository Participant (DP). Investor surrenders his physical shares and in turn gets electronic shares directly in his demat account. Under the current provision, dematerialization of promoter shareholding is mandatory while non-promoter investors have an option to hold securities either in physical or demat form.

Why do you need a demat?
- A retail investor can hold shares in physical form, but cannot trade. For trading (buying and selling) of shares, an investor has
to have a demat account. - Demat is safe and convenient as it reduces risk of holding shares in physical form, reduces paperwork, ensures immediate
transfer and eliminates bad deliveries. - It eliminates transit losses relating to benefits such as dividends, bonuses, stock split, rights as these are automatically
transferred into demat. - Any update with depository gets automatically registered with all companies in which investor holds securities eliminating the
need to correspond with each of them separately.
How SHAREWORLD Solutions Can Help You
We provide solutions and services to the investors facing numerous problems while converting physical shares to demat.Dormant demat account : Demat account of an investor may become dormant due to inactivity for a long time. In such case, an investor face problems in trading, transfer and transmission of shares.
Lack of updated information An investor has changed address, but the details are correspondingly not updated with the depository participant or the company, resulting in a ismatch with the share holders database of the company. In this case, an investor may lose benefits such as dividends, bonus, split shares, right issues etc.
Loss of demat details: For some reasons, a share holder may lose his demat details, resulting in complete lack of communication with the company and depository participant.