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In Depository System, securities are held in ______ form.

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Question

In Depository System, securities are held in ______ form.

Options

  • scrip Based

  • electronic

  • physical

MCQ
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Solution

In Depository System, securities are held in electronic form.

shaalaa.com
Depository System
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2025-2026 (March) Model set 1 by shaalaa.com

RELATED QUESTIONS

Write notes on Importance of Depository system. 


In physical mode, 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.

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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.

Depository system began in the USA for the first time in the world.


Find the odd one.


Complete the sentence.

First Depository of the world started in the year ______.


Select the Suitable word for the following.

Dematerialization ____________.


Select the correct option from the bracket.

Group ‘A’ Group ‘B’
a) First depository in India 1) ____________
b) ____________ 2) Rematerialisation
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d) ____________ 4) ISIN

(12 digit code, NSDL, Electronic to physical, No distinctive number)


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.


India has a ______ depository system.


Give one word or phrase for the following sentence:

How securities are settled?


Explain any four advantages of depository system to the company.


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