Dematerialised definitions
| Word backwards | desilairetamed |
|---|---|
| Part of speech | The part of speech of the word "dematerialised" is a verb. |
| Syllabic division | de-ma-te-ri-a-lised |
| Plural | The plural of the word "dematerialised" is "dematerialised." It remains the same in both singular and plural form. |
| Total letters | 14 |
| Vogais (3) | e,a,i |
| Consonants (6) | d,m,t,r,l,s |
What is Dematerialised?
Dematerialised, often referred to as demat, is the process of converting physical securities such as stocks, bonds, or debentures into electronic or digital form. This method eliminates the need for physical certificates by storing and trading securities in electronic format.
The Dematerialisation Process
In order to dematerialise securities, an investor needs to open a Demat account with a registered Depository Participant (DP). The investor then surrenders the physical certificates to the DP, who in turn credits the electronic equivalents to the investor's Demat account. This electronic holding represents the ownership of the securities.
Benefits of Dematerialisation
Dematerialisation offers several advantages such as enhanced liquidity, reduced paperwork, faster settlement cycles, and lower risk of theft or damage to physical certificates. Investors can access their holdings conveniently through online platforms and enjoy seamless transactions without the hassle of handling paper documents.
Demat Account Services
A Demat account not only holds shares and securities but also allows investors to conduct transactions, pledge securities for loans, receive dividends directly, and participate in corporate actions like bonus or rights issues. It provides a centralized platform for managing investment portfolios efficiently.
Regulations and Safety
Demat accounts are regulated by depository bodies and adhere to stringent security measures to protect investor interests. The electronic transfer of securities is encrypted and backed by authentication protocols to ensure the safety and integrity of transactions. This safeguards against fraud and unauthorized access to holdings.
Future of Dematerialisation
As technology continues to advance, dematerialisation is likely to become the standard practice for trading and holding securities. The ease of digital transactions, increased transparency, and cost-effectiveness make demat accounts an attractive option for both seasoned investors and newcomers to the financial markets.
Dematerialised Examples
- The company dematerialised its physical documents by digitizing them.
- Investors can own dematerialised securities in electronic form.
- The dematerialised design of the new building reduced its environmental impact.
- Artists are exploring dematerialised art forms using digital mediums.
- The dematerialised economy is shifting towards online transactions.
- By using cloud services, businesses can dematerialise their IT infrastructure.
- The dematerialised process streamlined production and reduced waste.
- Researchers are studying dematerialised energy sources such as solar power.
- The dematerialised marketplace allows for virtual buying and selling of goods.
- Dematerialised education platforms offer remote learning opportunities.