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प्रश्न
Justify the following statement.
The electronic holding of securities is safer than physical holding.
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उत्तर
- Under the depository system, securities are held in electronic form.
- Physical certificates can be lost, damaged, torn, stolen, misplaced during transit, etc.
- Delivering certificates that are torn, fake, etc. creates problems in buying and selling of securities.
- The transfer and settlement of securities are done electronically.
- It leads to the elimination of storage and handling of certificates.
- So, all risks associated with physical holding are eliminated by the electronic holding of securities.
- Hence, the electronic holding of securities is safer than physical holding.
APPEARS IN
संबंधित प्रश्न
In physical mode, securities are held in ______ form.
Risk of losing certificates exists in _________ mode.
Select the correct answer from the options given below and rewrite the statement.
______ is the institute which facilitates electronic holding of securities.
Write a word or a term or a phrase which can substitute the following statement.
This system allows faster and easier transfer of securities.
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.
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.
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 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 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.
What is Depository System?
Explain the following term/concept.
Depository system
Justify the following statement.
The depository system results in reduced time, cost, and efforts.
Justify the following statement.
Depository system is very similar to the banking system.
India has a ______ depository system.
State benefits of the depository to Investors.
Justify the following statement.
Depository System has a very important role to play in the successful functioning of the capital market.
Explain the following term/concept:
Depository system
