Advertisements
Advertisements
प्रश्न
Justify the following statement.
The depository system results in reduced time, cost, and efforts.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
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.
Match the pairs.
| Group ‘A' | Group ‘B' |
| a) Bad Delivery | 1) 1956 |
| b) Depository Act | 2) A 12 digit number/code. |
| c) ISIN | 3) Connects Government and Bank. |
| d) Depository participant | 4) Second Depository in India. |
| e) CDSL | 5) The Issuer Company. |
| f) Depository | 6) Problem faced in physical mode. |
| g) Beneficial owner | 7) A 10 digit number/code. |
| 8) Connects Depository and Investor. | |
| 9) First Depository in the world. | |
| 10) Coustodian of securities in electronic form. | |
| 11) Problem faced in electronic mode. | |
| 12) 1996 | |
| 13) Government Organisation. | |
| 14) The Investor. |
Write a word or a term or a phrase which can substitute the following statement.
This mode of holding securities may result in loss and theft of certificates.
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.
Depository system began in the USA for the first time in the world.
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.
A Bank can work as a DP.
Select the Suitable option for the following.
____________ DP.
Select the Suitable option for the following.
First depository of world ____________.
Select the Suitable option for the following.
CDSL ____________.
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.
Allotment and Transfer of securities are time consuming in electronic mode.
Explain any four advantages of a depository system to an investor.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
India has a single depository system.
Explain the following term/concept:
Depository system
