DEMATERIALISATION
17 May 2017 By PDSNETThe replacement of physical share certificates with an electronic record. In South Africa this record is maintained by STRATE (Share TRAnsactions Totally Electronic). STRATE is the South African Central Securities Depository (CSD) and it keeps an electronic database of every issued share and who owns it. This database is updated every trading day as shares change hands. It is still possible to get a physical share certificate, but it is more expensive. An advantage of dematerialisation is that it has virtually eliminated all forms of lost and stolen scrip. Failed trades have also disappeared.
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