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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
Risk of losing certificates exists in _________ mode.
Select the correct answer from the options given below and rewrite the statement.
In Depository System, securities are held in ______ form.
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.
Physical mode of holding securities is risky.
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.
Select the Suitable option for the following.
First depository of world ____________.
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)
Correct the underlined word and rewrite the following sentence.
Electronic mode of holding securities is risky.
Explain the following term/concept.
Depository system
Justify the following statement.
Depository provides easy and quicker transfer of shares.
State benefits of the depository to Investors.
Explain any four advantages of depository system to the company.
Explain the following term/concept:
Depository system
