Question:medium
______ is the process of holding securities in electronic form.
______ is the process of holding securities in electronic form.
Show Hint
"Demat" is short for dematerialisation — the process of converting physical shares into digital form.
Updated On: Jan 13, 2026
- Financial Intermediation
- Dematerialisation
- Allocative function
- Mobilisation of securities
Show Solution
The Correct Option is B
Solution and Explanation
Dematerialisation is the process of converting physical share certificates into an electronic form, enhancing transaction security, speed, and traceability.
This process is crucial for contemporary trading and investment, mitigating risks associated with the loss, theft, forgery, or damage of paper certificates.
Final Answer: (B) Dematerialisation
This process is crucial for contemporary trading and investment, mitigating risks associated with the loss, theft, forgery, or damage of paper certificates.
Final Answer: (B) Dematerialisation
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