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Question
Justify the following statement.
ISIN is necessary component of Demat.
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Solution
- ISIN is a code that uniquely identifies a specific securities issue.
- It is a standard numbering system which is accepted globally.
- ISINs in any country are allotted by that country’s National Numbering Agency (NNA).
- In India, ISINs are assigned by SEBI to NSDL (for demated shares). SEBI works as NNA in India.
- For Government securities, allotment of ISIN is done by the RBI.
- ISIN consists of a 12 (Twelve) digit alpha-numeric code which is divided in three parts.
- The DP will be able to transfer the securities to/from the investor’s account only on the basis of the ISIN.
- Thus, ISIN is a necessary component of demat.
RELATED QUESTIONS
Dematerialisation and Rematerialisation
Demated shares are ______.
Write a word or a term or a phrase which can substitute the following statement.
This process converts securities into electronic form from physical form.
Write a word or a term or a phrase which can substitute the following statement.
This process converts securities into physical form from electronic form.
Write a word or a term or a phrase which can substitute the following statement.
This means securities are without distinctive identity number.
Write a word or a term or a phrase which can substitute the following statement.
This is the unique code for security given in depository system.
Complete the sentence.
The unique code identifying a security is ______.
Select the correct option for the following.
Fungibility ____________.
Answer in one sentence.
What is Rematerialisation?
Correct the underlined word and rewrite the following sentence.
ISIN is a code given to a company.
Correct the underlined word and rewrite the following sentence.
ISIN of Indian Government securities is issued by NSDL.
Arrange in proper order.
- Investor (BO) submits an application for securities to the issuer company.
- Depository intimates the DP about crediting BO's Account.
- Issuer company gives details of allotment to Depository.
Explain the following term/concept.
Fungibility
Explain the following term/concept.
ISIN
Distinguish between the following:
Dematerialization and Rematerializotion
Explain the constituents of Depository system.
