Question

Shares in physical form cannot be converted into electronic form.

• A. True
• B. False

Answer 1

The correct option is B False

This statement is 'False' because of the following reasons:
(i) Shares in physical form can be converted in electronic form by creating D'mat account of investor.
(ii) SEBI has made compulsory for traded scripts thus shares in physical form can be converted in electronic form.
(iii) Depository participant is die authorised agent through him the investor opens the D'mat account. (iv) Thus, there is no tedious paper work, transfer can be done in 4-5 days.