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प्रश्न
Justify the following statement.
The depository system results in reduced time, cost, and efforts.
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उत्तर
- Under the depository system, securities are held in electronic form.
- The transfer and settlement of securities are done electronically.
- The efforts that were required in filling transfer forms and lodging the documents are eliminated in the depository system.
- Processing time in the transfer of securities is reduced and neither the securities nor the cash is tied/held up for an unnecessarily long time.
- Further, stamp duty levied on the transfer of physical shares is also not applicable. So, the cost involved is also eliminated.
- Even at the company end, costs, efforts, and time involved in printing and distribution of certificates in cases of new issues, bonuses, transfers, etc. are saved.
- Thus, the depository system results in reduced time, cost, and efforts.
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संबंधित प्रश्न
Write notes on Importance of Depository system.
In physical mode, securities are held in ______ form.
Select the correct answer from the options given below and rewrite the statement.
In Depository System, securities are held in ______ form.
Select the correct answer from the options given below and rewrite the statement.
India has a ______ depository system.
Select the correct answer from the options given below and rewrite the statement.
______ has to pay charges to maintain Demat Account.
State whether the following statement is true or false.
Physical mode of holding securities is risky.
State whether the following statement is true or false.
Allotment of securities take longer time when in physical mode.
Find the odd one.
Select the Suitable word for the following.
Dematerialization ____________.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) First depository in India | 1) ____________ |
| b) ____________ | 2) Rematerialisation |
| c) Fungibility | 3) ____________ |
| d) ____________ | 4) ISIN |
(12 digit code, NSDL, Electronic to physical, No distinctive number)
Answer in one sentence.
Give examples of action termed as corporate action.
Correct the underlined word and rewrite the following sentence.
Electronic mode of holding securities is risky.
Correct the underlined word and rewrite the following sentence.
Banking system leads to a scrip less capital market.
Explain four advantages of Depository system to the Company.
Justify the following statement.
Depository system is very similar to the banking system.
India has a ______ depository system.
In Depository System, securities are held in ______ form.
India has a single depository system.
