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Depository System — Secretarial Practice STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeDepository System4 Marks
Question
DP is an important constituent of the Depository system.
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Answer

  • Depository Participant acts as a link between the Depository and the Investor. In other words, it is an agent of the depository.
  • DP is registered under the SEBI Act. It enjoys rights and obligations as specified under SEBI Regulations of 1996.
  • It is an intermediary appointed by Depository.
  • DP directly deals with customers and sends a statement of accounts periodically.
  • The DP has a unique number for identification.
  • Banks, Financial Institutions, Stock Brokers, etc. can function as Depository Participants.
  • Thus, it is rightly justified that DP is an important constituent of the Depository system.

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