__________ is the process where securities held by the investor in the physical form are cancelled and the investor is given an electronic entry.

Dematerialisation

The correct answer is Option (2) → Dematerialisation

The process where securities held by the investor in the physical form are cancelled and the investor is given an electronic entry or number so that she/he can hold it as an electronic balance in an account. This process of holding securities in an electronic form is called dematerialisation.