"The holding of securities in dematerialise form is not mandatory". Explain the relevant provisions with reference to the Depositories Act.

Depositories Act, 1996 gives the option to investors to receive securities in physical form or in the dematerialized mode. It is not necessary that all eligible securities must be in the depository mode. In the scheme of the Depositories legislation, the investor has been given supremacy. The investor has the choice of holding physical securities or opt for a depository-based ownership record. However, in case of fresh issue of securities, all securities issued have to be in dematerialized form. However, after that, investor will also have the freedom to switch from depository mode to Physical mode and vice versa. The decision as to whether or not to hold securities within the depository mode and if in depository mode, which depository or participant, would be entirely up to the investor. According to the Depositories Act, 1996, an investor has the option to hold securities either in physical or electronic form. Part of holding can be in physical form and part in demat form. However, SEBI has notified that settlement of market trades in listing securities should take place only in the demat mode.