n NISM Certifications
X NISM Series X
Medium

Which statement is TRUE regarding holding shares in physical form?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Shares can be traded physically, but SEBI must be informed

  2. B

    Investors with more than 1000 shares can hold physically

  3. C

    Physical shares do not confer legal rights

  4. Shares must be dematerialized before sale on stock exchanges

    Correct answer

Why this is the answer

Physical shares need to be converted into demat form before trading.

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