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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
Write notes on Importance of Depository system.
Select the correct answer from the options given below and rewrite the statement.
In Depository System, securities are held in ______ form.
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.
DP is an agent of Depository.
Find the odd one.
Select the correct option from the bracket.
| Group ‘A' | Group ‘B' |
| a) Dematerialization | 1) ____________ |
| b) ____________ | 2) DP |
| c) First depository of world | 3) ____________ |
| d) CDSL | 4) ____________ |
(1999, Agent of Depository, Germany, physical to electronic)
Select the Suitable word for the following.
Dematerialization ____________.
Select the Suitable option for the following.
____________ DP.
Select the Suitable option for the following.
First depository of world ____________.
Explain four advantages of Depository system to the Company.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
Justify the following statement.
Depository provides easy and quicker transfer of shares.
Justify the following statement.
The depository system results in reduced time, cost, and efforts.
India has a ______ depository system.
In Depository System, securities are held in ______ form.
State benefits of the depository to Investors.
India has a single depository system.
Justify the following statement.
Depository System has a very important role to play in the successful functioning of the capital market.
