Advertisements
Advertisements
Question
Justify the following statement.
DP is an important constituent of Depository system.
Advertisements
Solution
- Depository Participant (DP) is the agent of depository. It is an intermediary appointed by depository.
- DP is registered under the SEBI Act. It enjoys rights and obligations as specified under SEBI (Depository and Participants) Regulations of 1996.
- DP acts as a link between depository and the investor.
- It directly deals with customers. It sends statement of accounts periodically.
- It functions like a securities bank. The DP maintains account of securities of each investor.
- It facilitates dematerialisation. It settles trade electronically.
- It credits securities in the event of rights issue, bonus issue, etc. It handles instant transfers of pay-outs like dividend, interest, etc.
- Thus, DP is an important constituent of depository system.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is a constituent of depository system.
State whether the following statement is true or false.
DP is a constituent of Depository System.
Find the odd one.
Complete the sentence.
Link between Depository and Investor is ______.
Complete the sentence.
Account of securities of the Investors is maintained by ______.
Complete the sentence.
The process which converts physical securities in electronic form is ______.
Complete the sentence.
The process which converts digital securities in physical form is ______.
Complete the sentence.
The Issuer company must register with ______.
Answer in one sentence.
What is a DP?
Correct the underlined word and rewrite the following sentence.
Demat accounts are opened and maintained by the Depository.
Explain Depository as constituent of Depository System.
Explain DP as the constituent of Depository system.
Explain the following term/concept:
Depository Participant (DP)
