Definition
Rematerialisation
Rematerialisation is the reverse of demat: converting electronic securities back into physical paper certificates.
An investor who wants physical certificates can submit a Rematerialisation Request Form (RRF) to their Depository Participant, after which the company issues paper certificates and the electronic balance is cancelled.
In practice, rematerialisation is rare today, since SEBI requires shares to be in demat form to be traded. It is mostly used for record-keeping or specific legal purposes, and the converted shares lose the liquidity of demat holdings.
Related terms
- DepositoryA depository is an institution that holds your shares and securities in electronic (demat) form, much like a bank holds your money.
- DematerialisationDematerialisation is the process of converting physical share certificates into electronic form held in a demat account.
- Demat AccountA demat account holds your shares and securities in electronic form, eliminating physical certificates and enabling seamless trading and settlement on stock exchanges.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.