Select in which form, shares are kept by depository for the purpose of trading?

Electronic form

The correct answer is option (4)- Electronic form.

Shares are kept in electronic form by depositories for the purpose of trading.

For trading purposes, electronic form has become the standard due to its efficiency, ease of transfer, and reduced risk of loss or fraud associated with physical share certificates. Electronic shares are held and transferred electronically though depositors, making trading more convenient and secure.

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.