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Question
Justify the following statement.
Depository system is very similar to the banking system.
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Solution
- As a bank keeps the money safe. Similarly, a depository system keeps the securities safe.
- As in a bank, funds are held in accounts having unique numbers. Similarly, in a depository system, securities are held in accounts having unique IDs.
- Like a bank, there is no physical handling of securities during allotments, transfers, etc.
- In a bank, the transfer of funds between accounts is done. Similarly, in a depository system, the transfer of securities between accounts is done.
- Hence, depository system is very similar to the banking system.
RELATED QUESTIONS
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.
Select the correct answer from the options given below and rewrite the statement.
India has a ______ depository system.
Select the correct answer from the options given below and rewrite the statement.
______ has to pay charges to maintain Demat Account.
Write a word or a term or a phrase which can substitute the following statement.
The organisation which holds the securities in electronic mode.
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.
A Bank can work as a DP.
Find the odd one.
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 ____________.
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)
Answer in one sentence.
Give examples of action termed as corporate action.
Correct the underlined word and rewrite the following sentence.
India has a single Depository system.
Explain the following term/concept.
Dematerialisation
Explain four advantages of Depository system to the Company.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
In Depository System, securities are held in ______ form.
Give one word or phrase for the following sentence:
How securities are settled?
Explain any four advantages of depository system to the company.
