Dematerialization is a method of transforming physical securities such as share certificates and other documents into electronic format and keeping them in a Demat account. An investor who wants to dematerialize their securities must open a Demat Account with a Depository Participant (DP). A depository is responsible for storing a shareholder’s securities in electronic form, these securities may be held by a registered Depositary Participant (DP) in the form of Share Certificates, bonds, government securities, and mutual fund units.