Study the following case/situation and express your opinion. Mr. Z holds 100 shares of Peculiar Co. Ltd. in Physical mode and wishes to convert the same in electronic mode : - Secretarial Practice

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Short Note

Study the following case/situation and express your opinion.

Mr. Z holds 100 shares of Peculiar Co. Ltd. in Physical mode and wishes to convert the same in electronic mode :

  1. Mr. Z holds a Saving Bank Account with CFDH Bank Ltd. Can he deposit his shares in this account for Demat?
  2. What type of account is needed for the same?
  3. Is it the RBI which will be the custodian of shares of Mr. Z after demating?
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Solution

  1. No, Mr. Z cannot deposit his shares in his bank account for demat.
  2. A demat account is required for converting physical shares into electronic holding.
  3. No, RBI will not be the custodian of the shares of Mr. Z. The depository i.e. NSDL or CDSL will be the custodian of shares of Mr. Z after demating.
Concept: Functioning of Depository System
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Chapter 9: Depository System - Study the following case/situation and express your opinion

APPEARS IN

SCERT Maharashtra Question Bank 12th Standard HSC Secretarial Practice Maharashtra State Board
Chapter 9 Depository System
Study the following case/situation and express your opinion | Q 1
Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 9 Depository System
Exercises | Q 3.1 | Page 141
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