Dematerialized securities are securities that are not on paper and a material certificate to that effect does not exist. They exist in the form of entries in the electronic records of organizations called depositories.
Essentially, in the demat system, the shares are held in a dematerialized form. This system works through a depository who is registered with the Securities and Exchange Board of India (SEBI) to perform the functions of a depository. For Example : NSDL www. nsdl.com , CDSL
FOR THE PURPOSE OF ANY PROVISION IN THIS ACT WHICH ENACTS THAT AN OFFICER OF THE COMPANY WHO IS IN DEFAULT SHALL BE LIABLE TO ANY PUNISHMENT OR PENALTY, WHETHER BY WAY OF IMPRISONMENT, FINE OR OTHERWISE, THE EXPRESSION "OFFICER WHO IS IN DEFAULT" MEANS ALL THE FOLLOWING OFFICERS OF THE COMPANY, NAMELY :-
(A) THE MANAGING DIRECTOR OR MANAGING DIRECTORS;
(B) THE WHOLE-TIME DIRECTOR OR WHOLE-TIME DIRECTORS;