Depository System — Secretarial Practice STD 12 Commerce / Arts — Question

(i) Dematerialization:
It is the process in which share certificates are converted into electronic form. The client has to open a DEMAT account with the help of DP.

(ii) Fungibility:
Fungibility means interchangeable. Financial assets may or may not be fungible. The shares in depositories are fungible. They don’t have distinctive numbers for identification.

(iii) Rematerialization:
Rematerialization is the process in which shares are reconverted into physical form.

(iv) International Securities Identification Number:
ISIN is an identification number given to a security of an issuer company at the time of issuing such security for the first time in the depository system. ISIN consists of a 12 (Twelve) digit alpha-numeric code which is divided into 3 (Three) parts. For Govt, securities allotment of ISIN is done by the RBI & for others by NSDL. It is accepted globally.