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Questions
Explain the following term/concept:
Depository Participant (DP)
What is meant by Depository Participants?
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Solution
- It is the agent of the Depository.
- It is registered under the SEBI Act.
- It enjoys rights and obligations as specified under the SEBI (Depositories and Participants) Regulations, 1996.
- It is an intermediary appointed by the Depository to provide services to investors.
- A DP acts as a link between the Depository and the investor.
- It directly deals with customers and provides services like account opening, dematerialisation, and securities transfer.
- It sends periodic statements of account to the investors.
- A DP functions like a securities bank, holding securities in electronic form on behalf of investors.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Demat account is opened by ______.
State whether the following statement is true or false.
DP is a constituent of Depository System.
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 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 Depository as constituent of Depository System.
Justify the following statement.
DP is an important constituent of Depository system.
