Read the following passage and answer the question.

Deepti's grandfather was unwell. He called Deepti and gave her a box containing cash and certain papers which were crumbled. He saw them carefully and found that these were share certificates. Deepti now wants to know the process through which she can trade in these shares. She also learnt about the trading procedure and got to know about SEBI as well. She told her friend Rekha, "SEBI regularly inspects the various elements of trading and also conducts the broker's enquiries. SEBI also promotes fair trade practices for investor protection. It also controls insider trading and impose penalties in case of such malpractices." She also told her friend about many instruments such as commercial papers or bills which are not traded on stock exchanges.

Which process would have been done by Deepti to facilitate trading?

Dematerialisation

The correct answer is option 3- Dematerialisation.

To facilitate trading in the share certificates that Deepti has, she would need to convert the physical share certificates into an electronic format. This process is known as Dematerialisation.



OTHER OPTIONS

• Remutualisation: This refers to the process of converting a demutualised organization back into a mutual organization, which is not relevant to trading shares.

• Rematerialisation: This is the reverse process of dematerialisation, where electronic shares are converted back into physical certificates. This option is not applicable here since Deepti needs to convert physical certificates into electronic form for trading.

• Demutualisation: This involves converting mutual organizations into non-mutual organizations.