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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
Risk of losing certificates exists in _________ mode.
Write a word or a term or a phrase which can substitute the following statement.
The organisation which holds the securities in electronic mode.
State whether the following statement is true or false.
Allotment of securities take longer time when in physical mode.
State whether the following statement is true or false.
Depository system is very similar to banking system.
State whether the following statement is true or false.
DP is an agent of Depository.
State whether the following statement is true or false.
A Bank can work as a DP.
Complete the sentence.
First Depository of the world started in the year ______.
Select the Suitable word for the following.
Dematerialization ____________.
Answer in one sentence.
What is Depository System?
Correct the underlined word and rewrite the following sentence.
Allotment and Transfer of securities are time consuming in electronic mode.
Correct the underlined word and rewrite the following sentence.
Banking system leads to a scrip less capital market.
Explain the following term/concept.
Depository system
Justify the following statement.
Depository provides easy and quicker transfer of shares.
Explain the advantages of the Depository System to the companies.
In Depository System, securities are held in ______ form.
State benefits of the depository to Investors.
