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Question
Justify the following statement.
Depository provides easy and quicker transfer of shares.
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Solution
- Under the depository system, securities are held in electronic form.
- The transfer and settlement of securities are done electronically.
- The efforts that were required in filling transfer forms and lodging the documents are eliminated in the depository system.
- Processing time in the transfer of securities is reduced and neither the securities nor the cash is tied/held up for an unnecessarily long time.
- Further, stamp duty levied on the transfer of physical shares is also not applicable.
- Hence, the depository provides easy and quicker transfer of shares.
RELATED QUESTIONS
Risk of losing certificates exists in _________ mode.
Select the correct answer from the options given below and rewrite the statement.
In Depository System, securities are held in ______ form.
Select the correct answer from the options given below and rewrite the statement.
______ is the institute which facilitates electronic holding of securities.
Write a word or a term or a phrase which can substitute the following statement.
The Agent of the Depository.
State whether the following statement is true or false.
India has a multi Depository 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.
Find the odd one.
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 option for the following.
First depository of world ____________.
Answer in one sentence.
What is Depository System?
Explain the following term/concept.
Depository system
Explain the following term/concept.
Dematerialisation
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?
State benefits of the depository to Investors.
Explain the following term/concept:
Depository system
