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Question
Explain Depository as constituent of Depository System.
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Solution
- It is an organization like the Central Bank where securities are held in electronic form at the investor’s request.
- It also provides different services related to different transactions in such securities.
- It is responsible for the safe-keeping of the investor's securities.
- There is no direct access to investors with the Depository.
- It works as a link between the company and investors.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is a constituent of depository system.
Select the correct answer from the options given below and rewrite the statement.
Demat account is opened by ______.
Find the odd one.
Complete the sentence.
Link between Depository and Investor is ______.
Complete the sentence.
Account of securities of the Investors is maintained by ______.
Complete the sentence.
The process which converts physical securities in electronic form is ______.
Complete the sentence.
The process which converts digital securities in physical form is ______.
Complete the sentence.
The Issuer company must register with ______.
Answer in one sentence.
What is a DP?
Correct the underlined word and rewrite the following sentence.
Demat accounts are opened and maintained by the Depository.
Study the following case/situation and express your opinion.
Mr. L wants to demat his 25 shares of Peculiar Co. Ltd. bearing certificate No. 100 and distinctive No. 76-100.
- Which form is he required to fill as a written request to the DP?
- Does he have to fill the instrument of transfer if he wishes to transfer the same after demat?
- Does he have to quote certificate no. and distinctive no. if he wishes to transfer his shares after it is in demat form?
Explain DP as the constituent of Depository system.
Justify the following statement.
DP is an important constituent of Depository system.
