Let’s delve deeper into the advantages of holding shares in dematerialized form: 

1. Easy Liquidity: Demat shares can be swiftly converted into cash. When you need to sell your shares, the process is streamlined—no need to physically transfer certificates or find buyers. This liquidity is especially crucial for active traders and investors who want flexibility.

2. Risk Reduction:

   • Loss and Damage: Physical share certificates are vulnerable to loss, theft, or damage. Misplacing or accidentally destroying a valuable certificate can be distressing.

   • Signature Mismatch: Physical shares involve the risk of signature mismatches during transfers. If the signature on the certificate doesn’t match the records, complications arise.

   • White Ant Incident: As you mentioned, incidents like the destruction of share certificates by white ants can result in significant losses. Dematerialization eliminates such risks.

3. Fraud Prevention:

   • Forgery: Physical certificates can be forged or tampered with, leading to fraudulent transactions. Demat shares are securely stored electronically, reducing the chances of manipulation.

   • Authentication: In the demat system, authentication relies on digital processes, minimizing the risk of unauthorized transfers.

4. Efficient Transfers:

   • Physical Shares: Transferring physical shares involves a cumbersome process. Certificates must be sent to the issuing company for verification, signature matching, and endorsement.

   • Demat Shares: Dematerialized shares can be transferred electronically, simplifying the entire process. No need for physical paperwork or lengthy verifications.

In summary, dematerialization offers convenience, safety, and efficiency, making it the preferred choice for modern investors.