Before 1994, the concept of transferring shares was done through physical form which has a major risk of being lost, stolen, or torn down. In 1994, the concept of dematerialisation of shares was introduced which brought an ease for the investors to be carefree from transferring shares without any drawbacks and hassle taking place.
A company can dematerialise its shares through any of the following two depositories - CDSL or NSDL. These are the only two depositories which facilitate the dematerialisation of the shares. In the Private Equity Market, these shares are transferable from one demat account to another demat account.