Why should the investor dematerialise his securities?
SEBI has mandated delivery of stocks only in dematerialised form.Hence an investor holding physical certificates will not be able to sell them at an opportunity.Depositing securities with the Depository will give an investor a freedom from the worries of loss of share certificates through theft, mutilation, fire, etc. When he sells his shares, the paperwork required will be reduced to a minimum. Investors will also prefer to buy shares, which are already in the depository mode. Thus, he will increasingly find it easy to sell shares whenever he wishes to. In addition, as the depository system becomes popular, brokers will be increasingly reluctant to deal with physical shares.
Related Questions
- What should an investor do if the share certificates he wants to dematerialise do not belong to the list of securities eligible for dematerialisation specified by NSDL?
- Can an investor dematerialise all his depository eligible securities through the same account?
- Can an investor dematerialise his entire eligible securities through the same account?
