Advertisements
Advertisements
प्रश्न
Write notes on Importance of Depository system.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Depository Act was passed in __________.
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.
This system allows faster and easier transfer of securities.
State whether the following statement is true or false.
India has a multi Depository System.
State whether the following statement is true or false.
A Bank can work as a DP.
Find the odd one.
Complete the sentence.
First Depository of the world started in the year ______.
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 word for the following.
Dematerialization ____________.
Select the Suitable option for the following.
____________ DP.
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.
Explain four advantages of Depository system to the Company.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
Justify the following statement.
Depository system is very similar to the banking system.
In Depository System, securities are held in ______ form.
Explain the following term/concept:
Depository system
