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Question
India has a ______ depository system.
Options
sole
multi
single
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Solution
India has a multi depository system.
Explanation:
The Depository System was introduced in India by passing the Depository Act in 1996. Under this Act, a competitive multi-depository system consists of two depositories. NSDL and CDSL were set up. It is interesting to note that the world’s first depository was set up in 1947 in Germany.
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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.
India has a ______ depository system.
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. |
State whether the following statement is true or false.
DP is an agent of Depository.
State whether the following statement is true or false.
A Bank can work as a DP.
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 ____________.
Answer in one sentence.
Give examples of action termed as corporate action.
Correct the underlined word and rewrite the following sentence.
Electronic mode of holding securities is risky.
Correct the underlined word and rewrite the following sentence.
Allotment and Transfer of securities are time consuming in electronic mode.
Correct the underlined word and rewrite the following sentence.
Banking system leads to a scrip less capital market.
Correct the underlined word and rewrite the following sentence.
India has a single Depository system.
Explain the following term/concept.
Dematerialisation
Justify the following statement.
Depository system is very similar to the banking system.
In Depository System, securities are held in ______ form.
Give one word or phrase for the following sentence:
How securities are settled?
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.
