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.

So, the correct answer is :

4. Electronic form 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.

Certainly, here are explanations for the other forms mentioned :

1. Physical form: This refers to shares in their physical, paper certificate form. In the past, physical share certificates were common, and investors would physically hold and transfer these certificates when trading shares. However, with the advancement of technology and the introduction of electronic trading, physical share certificates have become less common.

2. Cash form: Cash form does not apply to shares. It typically refers to money in the form of banknotes and coins, which is used as a medium of exchange. When trading shares, you use cash to purchase shares, but the shares themselves are not in cash form.

3. Bank Custody form: Bank custody is a service provided by banks to safeguard financial assets, including shares. When shares are held in bank custody, the bank acts as a custodian and holds the shares on behalf of the owner. The shares may be held in physical or electronic form, depending on the owner's preference.

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. Electronics shares are held and transferred electronically through depositories, making trading more convenient and secure.