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Question
Answer in one sentence.
What is Depository System?
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Solution 1
The system under which shares are held, transferred, and settled in electronic form is called a depository system.
Solution 2
Under Depository System, securities are held in electronic form. The transfer and settlement of securities are done electronically. The Depository System maintains accounts of the shareholder, enables transfer, collects dividends, bonus shares, etc. on behalf of the shareholder. This system is also called as scripless trading system.
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RELATED QUESTIONS
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.
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.
A Bank can work as a DP.
Find the odd one.
Find the odd one.
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.
Correct the underlined word and rewrite the following sentence.
Electronic mode of holding securities is risky.
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.
Correct the underlined word and rewrite the following sentence.
India has a single Depository system.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
India has a ______ depository system.
State benefits of the depository to Investors.
