English

Justify the following statement. ISIN is necessary component of Demat.

Advertisements
Advertisements

Question

Justify the following statement.

ISIN is necessary component of Demat.

Justify
Advertisements

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.
shaalaa.com
Concepts/Terms Related to Depository System
  Is there an error in this question or solution?
Chapter 9: Depository System - Exercises [Page 142]

APPEARS IN

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

Englishहिंदीमराठी


      Forgot password?
Use app×