Immobilization and dematerialize
Immobilization means the employ of securities in paper form and the employ of a Central Securities Depository or more than one, which is/are electronically linked to a settlement system. Securities (either constituted by paper instruments or represented by paper certificates) are immobilized in the sense that they are held by the depository at all times. In the historic transition from paper-established to electronic practice, immobilization often serves as a transitional phase prior to dematerialize.
The Depository Trust Company in the New York is the most prominent immobilizer of securities in the world. Euro clear and Clear stream Banking, Luxembourg are two significant instances of international immobilization systems. Both originally settled euro bonds, but now a wide range of international securities are settled by means of them substitute many types of sovereign debt and equity securities.
Dematerialization
Dematerialisation requires dispensing with paper instruments and certificates altogether. Dematerialized securities exist only in the form of electronic records. The legal strike of dematerialisation takes issue in relation to bearer and registered securities in the order given.
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