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Dematerialization


  • What Does Dematerialization - DEMAT Mean?

    The move from physical certificates to electronic book keeping. With the age of computers and the Maldives Securities Depository Company Pvt Ltd (MSD), securities no longer need to be in certificate form. They can be registered and transferred electronically. 


  • The Benefits

    * A safe and convenient way to hold securities.
    * Immediate transfer of securities
    * No stamp duty on transfer of securities.
    * Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.
    * Reduction in paperwork involved in transfer of securities.
    * Reduction in transaction cost.
    * No odd lot problem, even one share can be sold.
    * Change in address recorded with MSD gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately.
    * Automatic credit into demat account of shares, arising out of bonus, split, consolidation, merger etc. 


  • Paperless Around the World

    Markets in many countries around the world no longer issue paper securities at all. China, for example, the place where paper was invented, no longer relies on paper securities at all. As a result, stock theft and forgery are not much of a problem in China.

    In Europe, Denmark and France began the move to paperless, electronic securities 20 years ago, and markets in many other countries have followed. Some, like New Zealand, won't even let a company list its stock on the exchange if it insists on issuing paper certificates.

    Although most securities in the United States are no longer issued on paper, many companies still issue their common equity on paper certificates. That's true in other markets as well, such as Japan's, although even in Japan a deadline of 2009 has been set for the phasing out of paper securities.

    Here's a partial but by no means complete list of markets that no longer use paper securities. 

  • Europe: Denmark, Finland, France, Greece, Hungary, Iceland, Norway, Poland, Slovenia, Sweden, Switzerland, Ukraine.
  • Asia-Africa: Australia, China, India, Jordan, Malaysia, New Zealand, Pakistan, Singapore, South Africa, Sri Lanka.
  • Americas: Argentina, Brazil, Mexico.


  • In order to Demat your shares you need to open a Demat Account in MSD. To open Demat Account is very simple and easy.

    You just have to fill Account Opening Form 01 (individulas) or Account Opening Form 02 (Business, Clubs, Associations) and submit to Dealing Company or MSD. To see complete procedure of account opening. Click Here.