Demat or become invalid

For years, Sebi and exchanges have been trying hard to achieve 100% dematerialisation

The government and the Securities and Exchange Board of India (Sebi) have made dematerialisation of shares compulsory. While all new investors and companies issue shares in dematerialised format, some legacy investors continue to hold shares in the form of physical certificates. For years, Sebi and exchanges have been trying hard to achieve 100 per cent dematerialisation. Impressed by the government’s demonetisation initiative, an exchange official recently offered a solution: “Like demonetisation, the government should declare all the shares held in physical form to be invalid after a particular date.”