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Write a word or a term or a phrase which can substitute the following statement. The organisation which holds the securities in electronic mode.

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Question

Write a word or a term or a phrase which can substitute the following statement.

The organisation which holds the securities in electronic mode.

One Word/Term Answer
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Solution

Depository

Explanation:

Under Depository System, securities are held in electronic form. The transfer and settlement of securities are done electronically. The Depository System maintains accounts of the shareholder, enables transfer, collects dividends, bonus shares, etc. on behalf of the shareholder. This system is also called as scripless trading system.

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Depository System
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Chapter 9: Depository System - Exercises [Page 139]

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