Dematerialization of shares is the process of converting physical share certificates into electronic form, facilitating easier and more secure trading and management of shares. Shareholders must submit a dematerialization request to their Depository Participant (DP), along with the physical certificates and a demat request form. The DP then verifies the documents and initiates the process with the depository. Once processed, the shares are credited to the shareholder’s demat account in electronic form. This transition to digital records helps reduce the risk of loss or theft of physical certificates, simplifies transactions, and enhances overall efficiency in managing shareholdings.