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

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeDepository System4 Marks
Question
ISIN is a necessary component of Demat.
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Answer

  • International Securities Identification Number (ISIN) is a code that uniquely identifies a specific securities issue.
  • ISINs are allotted by that country’s NNA (National Numbering Agency).
  • ISIN is a standard numbering system that is accepted globally.
  • The ISIN’s structure is currently defined by the International Organization of Standardization (ISO).
  • ISIN consists of a 12 (twelve) digit alpha-numeric code which is divided into 3 (three) parts.
  • The company has to apply for ISIN for its securities with documents like a prospectus.
  • In India, issuing ISIN to securities is assigned by SEBI to NSDL (for Demat shares). SEBI works as NNA in India.
  • Thus, from the above points, it is rightly justified that ISIN is a necessary component of Demat.

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