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Question

Supriya's grandmother who was unwell called her and gave her a gift packet. Supriya opened the packet and saw many crumpled share certificates inside. Her grandmother told her that they had been left behind by her late grandfather. As no trading is now done in physical form, Supriya wants to know the process by adopting which she is in a position to deal with these certificates. Identify and state the process.


A

Dematerialisation

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B

Stock exchange

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C

Depository

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D

Demat

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Solution

The correct option is A

Dematerialisation


Dematerialisation is a process where securities held by the investor in physical form are cancelled and the investor gives an electronic entry or number so that she/he can hold it as an electronic balance in an account.


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