The process of holding securities in an electronic form is known by a specific term. Identify the term.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 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.