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Justify the following statement. ISIN is necessary component of Demat. - Secretarial Practice

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Question

Justify the following statement.

ISIN is necessary component of Demat.

Justify
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Solution

  1. ISIN is a code that uniquely identifies a specific securities issue.
  2. It is a standard numbering system which is accepted globally.
  3. ISINs in any country are allotted by that country’s National Numbering Agency (NNA).
  4. In India, ISINs are assigned by SEBI to NSDL (for demated shares). SEBI works as NNA in India.
  5. For Government securities, allotment of ISIN is done by the RBI.
  6. ISIN consists of a 12 (Twelve) digit alpha-numeric code which is divided in three parts.
  7. The DP will be able to transfer the securities to/from the investor’s account only on the basis of the ISIN.
  8. Thus, ISIN is a necessary component of demat.
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Chapter 9: Depository System - Exercises [Page 142]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 9 Depository System
Exercises | Q 6.7 | Page 142

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Correct the underlined word and rewrite the following sentence.

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Arrange in proper order.

  1. Gets Statement of Accounts
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  3. Submit DRF

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