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Question
Explain the following term/concept.
Depository system
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Solution
The system under which shares are held, transferred, and settled in electronic form is called a depository system. 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.
______ is the institute which facilitates electronic holding of securities.
Depository Act was passed in __________.
Select the correct answer from the options given below and rewrite the statement.
______ has to pay charges to maintain Demat Account.
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.
The organisation which holds the securities in electronic mode.
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.
Depository system began in the USA for the first time in the world.
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 word for the following.
Dematerialization ____________.
Select the Suitable option for the following.
____________ DP.
Select the Suitable option for the following.
CDSL ____________.
Answer in one sentence.
What is Depository System?
Explain the following term/concept.
Dematerialisation
Justify the following statement.
The depository system results in reduced time, cost, and efforts.
India has a ______ depository system.
State benefits of the depository to Investors.
India has a single depository system.
