Depository System — Secretarial Practice STD 12 Commerce / Arts — Question

There are two ways of holding the securities:
(i) Physical mode:
Securities are held in physical form i.e. paper form. Holding securities in physical form is riskier as it can be torn, misplaced, stolen, damaged, etc. It also consumes a lot of time in storing and handling certificates and documents. Transfer and Transmission of shares is a time-consuming process.

(ii) Electronic/Dematerialized:
In this system, securities are held in electronic or dematerialized form. Holding securities in electronic form is a safe and secure way. It saves a lot of time in storing and handling certificates and documents. Transfer and Transmission of shares is a time-saving process. The electronic system is a much faster and easier system of holding securities.