Electronic holding of securities is safer than physical holding.

Answer: The statement is justified.

In electronic (demat) holding, securities are held as entries in the demat account maintained by a depository through a Depository Participant. It is safer than physical holding because:

• No loss or damage: Physical certificates can be lost, stolen, torn, burnt or mutilated; electronic holdings cannot.
• No forgery: Risks of fake certificates and forged signatures are eliminated.
• No bad delivery: Problems like signature mismatch or defective transfer deeds do not arise.
• Quick and secure transfer: Transfer takes place through Delivery Instruction Slips and is settled quickly; no postal delays or loss in transit.
• Automatic credit: Bonus and rights shares, and transmission to nominees, are credited directly to the account.
• Control by investor: The account can be frozen and statements of holding are received regularly, and the system is supervised by SEBI.

Therefore electronic holding is safer than physical holding.