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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.
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. |
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.
India has a multi Depository System.
State whether the following statement is true or false.
Depository system is very similar to banking system.
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.
Select the Suitable word for the following.
Dematerialization ____________.
Select the Suitable option for the following.
CDSL ____________.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) First depository in India | 1) ____________ |
| b) ____________ | 2) Rematerialisation |
| c) Fungibility | 3) ____________ |
| d) ____________ | 4) ISIN |
(12 digit code, NSDL, Electronic to physical, No distinctive number)
Correct the underlined word and rewrite the following sentence.
India has a single Depository system.
Explain the following term/concept.
Dematerialisation
Explain any four advantages of a depository system to an investor.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
Explain the advantages of the Depository System to the companies.
Give one word or phrase for the following sentence:
How securities are settled?
