Distinguish between the Dematerialisation and Rematerialisation.
| Basis | Dematerialisation | Rematerialisation |
| (1) Meaning | The process in which shares in physical form are converted into an electronic form is called Dematerialisation of Shares. | The process in which shares in electronic form are converted again into physical form is called Rematerialisation of Shares. |
| (2) Account of Shares | On dematerialisation of shares, the account of the shares in the electronic form is maintained in the Demat Account by Depository Participants | On rematerialisation of shares, the account of the shares in physical form is maintained by the company |
| (3) Conversion | Shares are converted from original physical form into an electronic form. | Shares in electronic form are converted again into physical form. |
| (4) Option | Recently, SEBI has made dematerialisation compulsory for those shares and securities which are traded on large scale. | The process of conversion of shares from the electronic form back into physical form is optional and involuntary |
| (5) Possession of Shares | Due to dematerialisation, the actual possession of shares and securities passes from the Investors to Depository Participants. | Due to rematerialisation, the actual possession of shares and securities passes from Depository Participant to Investors. |
