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प्रश्न
Write notes on Importance of Depository system.
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उत्तर
The importance of the depository system is explained as follows:
- Eliminates huge volume of paperwork: A significant amount of paperwork was required for the trading, transfer, and transmission of securities in systems that were paper- or scrip-based. Everything in the depository system is done electronically. As a result, the depository system reduces the huge amount of paperwork associated with systems that rely on paper (scrip).
- Use of state of the art technology: Modern technology is used in the depository system to enable quick transfers and transmissions of securities. The investors' demat accounts are automatically and instantly credited with dividends, interest, and other perks, as well as bonus shares and rights shares. Depository systems therefore provide opportunities for paperless trading.
- Eliminates storage and handling of certificates: Maintaining records of transfer documents or documentation pertaining to the sale and purchase of shares is not necessary in a depository system. The computer has all of the records of the transfers of securities as well as other relevant data saved and kept. As a result, handling and storing certificates is eliminated by the depository system.
- Reduces cost and efforts involved in the storage and handling of physical securities: The depository system reduces the expense and labor associated with handling and storing certificates. Additionally, stamp duty, postage, courier, registration, and other costs are saved by using this technique. Electronic records of all transactions pertaining to the purchase, sale, and transfer of securities are kept and preserved by the depository, an electronic system.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ is the institute which facilitates electronic holding of securities.
Depository Act was passed in __________.
Write a word or a term or a phrase which can substitute the following statement.
The organisation which holds the securities in electronic mode.
Write a word or a term or a phrase which can substitute the following statement.
The Agent of the Depository.
State whether the following statement is true or false.
Depository system began in the USA for the first time in the world.
State whether the following statement is true or false.
India has a multi Depository System.
State whether the following statement is true or false.
DP is an agent of Depository.
Find the odd one.
Find the odd one.
Select the correct option from the bracket.
| Group ‘A' | Group ‘B' |
| a) Dematerialization | 1) ____________ |
| b) ____________ | 2) DP |
| c) First depository of world | 3) ____________ |
| d) CDSL | 4) ____________ |
(1999, Agent of Depository, Germany, physical to electronic)
Select the Suitable option for the following.
____________ DP.
Correct the underlined word and rewrite the following sentence.
Banking system leads to a scrip less capital market.
Explain any four advantages of a depository system to an investor.
Justify the following statement.
Depository provides easy and quicker transfer of shares.
In Depository System, securities are held in ______ form.
State benefits of the depository to Investors.
India has a single depository system.
Explain any four advantages of depository system to the company.
