Question

Which of the following processes converts physical shares into Electronic form?

• A. Rematerialisation
• B. Dematerialization
• C. Demutualization
• D. Depositary

Hint:

Remember: "Demat" = Dematerialization (Physical to Electronic). "Remat" = Rematerialisation (Electronic to Physical). Think of "De-" as removing the material form.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Shares used to be held in physical paper certificates, but modern trading requires them to be electronic.
Step 2: Detailed Explanation:
Dematerialization (Demat) is the process of converting physical share certificates into electronic balances.
Rematerialisation is the exact opposite (electronic to physical).
Demutualization refers to the transition of a stock exchange from a non-profit member-owned organization to a for-profit shareholder-owned company.
Step 3: Final Answer:
(B) Dematerialization