An institution which records share certificate in the electronic form is known as _____________
- AStock exchange
- ✓Depository
- CDepository Participant
Answer: B.
View full solution →Question types
Depository System question types
122 questions across 15 question groups — pick any mix to generate a Secretarial Practice paper with step-by-step answer keys.
122
Questions
15
Question groups
5
Question types
01
Select the correct answer from the options given below and rewrite the statement.
30 Q→02Give one word or phrase for the following sentence:
17 Q→03State whether the following statement is true or false.
18 Q→04Match the correct pairs
2 Q→05Explain the following term/concept in detail:
10 Q→06Study the following case/situations and express your opinion.
8 Q→07Distinguish between the following:
3 Q→08Answer in brife
4 Q→09Justify the following statement.
11 Q→10Answer the following questions
3 Q→11Find the odd one.
2 Q→12Complete the sentences.
5 Q→13Select the correct option from the bracket.
1 Q→14Answer in one sentence.
6 Q→15Attempt the following.
2 Q→Sample Questions
Depository System questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
All depository participants are to be registered with _____________
- ARegistrar of companies
- ✓Securities and Exchange Board of India (SEBI)
- CDepository
Answer: B.
View full solution →Demat account holder can _____________ any person of his choice.
- AElect
- ✓Nominate
- CChoose
Answer: B.
View full solution →The provisions regarding dematerialization of securities are made in _____________
- ALaw
- BMemorandum of Articles
- ✓Articles of Association
Answer: C.
View full solution →Dematerialization is a process in which share in physical form is converted into _____________
- ✓Electronic form
- BPaper form
- CComputer form
Answer: A.
View full solution →An account to be opened by an investor for handling shares in electronic form.
Investor in whose name Demat account is opened.
The year in which National Security Depository Limited (NSDL) Started functioning.
The largest institution in India which gives Depository services.
The year in which the Depository act was passed.
For Dematerialized Securities Company has to be registered with the Depository.
Settlement of cash is easy in case of rematerialized Securities.
Dealing in Demated Securities is a time-consuming process.
ISIN number is given to the Depository Participant.
An investor can keep his Securities with his savings bank account.
| Group ‘A’ | Group ‘B’ |
| (1) Dematerialization | (a) State of being interchangeable |
| (2) Rematerialisation | (b) Register with Depository |
| (3) Fungibility | (c) Demat Request Form |
| (4) Issuer | (d) Transferor informs DP |
| (5) Sale of Shares | (e) Transferee intimates the DP |
| (6) Purchase of Shares | (f) Remat Request Form |
| (g) Broker |
Market Trade
Off Market Trade
Beneficial Owner (BO)
Depository Participant (DP)
Depository
Mariam is a broker working with Abacus Co. Question (a). Who is the depositor? Question (b). Who is the depository participant? Question (c). Mariam should be registered with whom?
Mr.K wants to rematerialize his 50 shares of PQR Ltd. Question (a).Which form he is required to fill as a written request to the DP? Question (b). Does he have to fill instrument of transfer if he wishes to transfer the same after remit? Question (c). Does he have to quote certificate no. and distinctive no. if he wishes to transfer his shares after it is in remat form?
KPCL Bank is a well-established banking institution. Now, it got registered as a Depository Participant. Question (a). Under which act did KPCL Bank got registered as a DP? Question (b). KPCL Bank as an intermediary will be a link between whom? Question (c). Name the two depositories in India, of whom KPCL Bank can be a DP (Agent).
Mrs. Z wishes to open a Demat account in her name.
Q1- Can she open the account going to the Mumbai office of NSDL?
Q2- Is she required to pay for the opening of the account and its maintenance?.
Q3- Does she have to send the shares to the respective company for demating?
Mr. R holds 100 shares of Peculiar Co. Ltd. In Demat mode.
Q1- He wants to transfer one share each to his wife, daughter, and son. Can he do so?
Q2- Does he need to submit DRF or DIS if he wants to transfer his shares?
Q3- Can he nominate his wife in his Demat account?
NSDL and CDSL
Depository and Depository Participant.
Dematerialization and Rematerialization.
How many depositories are established in India, under the Depository Act of 1996?
Explain the various concepts/terms related to Depository System:
Explain Depository System. State its importance.
What are the two ways of holding securities?
It is necessary for the Beneficial Owner to open a DEMAT account with the DP.
Better and quicker services of the Depository system attract investment from abroad.
An investor can raise loan against dematerialized securities.
The depository system has some advantages to the Investor.
ISIN is a necessary component of Demat.
What is the procedure for the Transfer of Securities under the Depository System in case of the sale of shares?
Explain the constituents of the depository system.
What is Depository System? Explain its advantages?
Off Market Trade, Market Trade, Clearing blouse.
Physical, Electronic, Capital
For converting electronic Securities into physical certificates an investor has to submit _____________
For converting physical Securities into electronic Securities an investor has to submit _____________
An account through which the Securities are held in electronic form is called as _____________
An investor who opens an account with the Depository participant is known as _____________
An agent of Depository is called as _____________
| Group ‘A’ | Group ‘B’ |
| (a) Depository Participant | (1) ………………………. |
| (b) …………………… | (2) Holds securities electronically |
| (c) Issuer | (3) ……………………… |
| (d) ……………………. | (4) Investor |
(Beneficial owner, Depository, Links investor and depository, Company issuing securities)
What is the full form of IPO?
Who is the Issuer?
What is Corporate Action?
When and where was the world’s first depository system set up?
What are the two modes of holding securities?
Explain the functioning of the depository under the IPO scheme.
Explain the process of Dematerialisation?
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