Though the company is under obligation to offer the securities in both physical and De-materialized mode, you have the choice to receive the securities in either mode.If you wish to have securities in De-materialized mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application.It is, however desirable that you hold securities in De-materialized form as physical securities carry the risk of being fake, forged or stolen.Just as you have to open an account with a bank if you want to save your money, Nowadays, you need to open a De-materialized account if you want to buy or sell stocks.