You can hold shares electronically through a Demat account. You can buy and sell shares electronically with this account. The practice of issuing physical shares to investors was discontinued after Demat accounts were introduced.
A Demat account is akin to a savings account of a bank that holds securities instead of money. The documents you need to open this account are:
Proof of income
Proof of identity
Proof of address

A Demat (Dematerialised) account is an electronic holding for stocks, bonds, mutual funds, and other securities, eliminating the need for physical share certificates. It acts like a digital wallet, allowing investors to buy, sell, and store securities safely and conveniently. Linked to a trading account, it facilitates seamless transactions in the stock market while reducing risks like theft, damage, or forgery associated with paper shares. Managed by depository participants (DPs) such as banks or brokers, Demat accounts also enable corporate actions like dividends and bonus shares to be credited automatically. They are essential for modern investing, offering transparency, speed, and efficiency. In India, two depositories, NSDL and CDSL, oversee Demat accounts, ensuring secure and regulated trading.