Wednesday, January 4, 2023
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| Points | Dematerialization | Rematerialization |
| 1. Meaning | Process of converting Physical certificates of securities into electronic form. | It is the process of conversion of electronic form of securities into physical form. |
| 2. Conversion | Here, the paper form of securities is converted into digitally/ electronically held securities. | Here, the electronic records are converted into physical/paper-form securities. |
| 3. Use of Form | It uses 'DRF': Viz. 'Dematerialization Request Form' from Investor to the DP. | It uses 'RRF': viz Rematerialization Request Form’ from the Investor to the DP. |
| 4. Sequence | This is an initial process. It is a primary and Principal function of the depository. | This is a reverse process. It is a secondary and supporting function of the depository. Already demated securities are remated. |
| 5. Identification of Securities | Demated securities have no distinctive numbers. They are fungible. | Remated securities will have certificates and distinctive numbers as issued by the company. |
| 6. Securities Maintenance Authority | The depository is the custodian of securities and records. | The issuing company is the record-keeping authority. Securities are maintained by the investor. |
| 7. Difficulty of Process | Demat is an easy process. Also, it's not a time-consuming process. | Remat is not only a time-consuming but also a complex process. |
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