Chapter 9 -Depository System.

Chapter 9, Depository System, sp, secretarial practice, hsc, maharashtra board, full solution,

Select the correct answer from the options given below and rewrite the statement.

1.In physical mode, securities are held in ______ form.

Options

• Paper
• Dematerialization
• Electronic

2.Risk of losing certificates exists in ______ mode.

Options

• Physical
• Dematerialised
• Digital

3.In Depository System, securities are held in ______ form.

Options

• Scrip based
• electronic
• Physical

4.______ is the institute which facilitates electronic holding of securities.

Options

• Depository participant
• Issuer
• Depository

5.There is no payment of ______ when securities are demated.

Options

• Octroi
• Wealth Tax
• Stamp Duty

6.Depository Act was passed in __________.

Options

• 1919
• 1996
• 1999

7.India has a ______ depository system.

Options

• sole
• multi
• single

8.______ is a constituent of depository system.

Options

• Government
• Issuer
• Trust

9.______ is the oldest depository in India.

Options

• Dow Jones
• NSDL
• CDSL

10.Demat account is opened by ______.

Options

• Beneficial Owner
• CDSL
• SEBI

11.Demated shares are ______.

Options

• Non-transferable
• Fungible
• Bearer

12.______ is a unique code given to a security.

Options

• IBM
• BBM
• ISIN

13.In India ISIN for corporate securities is allotted by ______.

Options

• NSDL
• Central Govt.
• State Govt.

14.______ has to apply for ISIN.

Options

• Company
• Depository participant
• Depositors

15.______ has to pay charges to maintain Demat Account.

Options

• Investor
• Issuer
• Depository

16.NSDL is promoted by ______.

Options

• NSE
• BSE
• FTSE

17.CDSL is promoted by ______.

Options

• NSE
• BSE
• FTSE

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Match the pairs.

Group ‘A’	Group ‘B’
a) Bad Delivery	1) 1956
b) Depository Act	2) A 12 digit number/code.
c) ISIN	3) Connects Government and Bank.
d) Depository participant	4) Second Depository in India.
e) CDSL	5) The Issuer Company.
f) Depository	6) Problem faced in physical mode.
g) Beneficial owner	7) A 10 digit number/code.
	8) Connects Depository and Investor.
	9) First Depository in the world.
	10) Coustodian of securities in electronic form.
	11) Problem faced in electronic mode.
	12) 1996
	13) Government Organisation.
	14) The Investor.

SOLUTION

Group ‘A’	Group ‘B’
a) Bad Delivery	6) Problem faced in physical mode.
b) Depository Act	12) 1996
c) ISIN	2) A 12 digit number/code.
d) Depository participant	8) Connects Depository and Investor.
e) CDSL	4) Second Depository in India.
f) Depository	10) Coustodian of securities in electronic form.
g) Beneficial owner	14) The Investor.

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

1.This mode of holding securities may result in loss and theft of certificates.

SOLUTION

This mode of holding securities may result in loss and theft of certificates. – Physical mode

2.The organization which holds the securities in electronic mode.

SOLUTION

This mode of holding securities may result in loss and theft of certificates. – Physical mode

3.This system eliminates storing of certificates.

SOLUTION

This system eliminates storing of certificates. – Depository system

4.This system allows faster and easier transfer of securities.

SOLUTION

This system allows faster and easier transfer of securities. – Depository system

5.The oldest Depository of India.

SOLUTION

The oldest Depository of India. – National Security Depository Limited (NSDL)

6.The country where depository system started for the first time.

SOLUTION

The country where depository system started for the first time. – Germany

7.The registered owner of securities.

SOLUTION

The registered owner of securities. – Beneficial owner

8.The Agent of the Depository.

SOLUTION

The Agent of the Depository. – Depository participant

9.This process converts securities into electronic form from physical form.

SOLUTION

This process converts securities into electronic form from physical form. – Dematerialisation

10.This process converts securities into physical form from electronic form.

SOLUTION

This process converts securities into physical form from electronic form. – Rematerialisation

11.This means securities are without distinctive identity number.

SOLUTION

This means securities are without distinctive identity number. – Fungibility

12.This is the unique code for security given in depository system.

SOLUTION

This is the unique code for security given in depository system. – ISIN

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State whether the following statement is true or false.

1.Physical mode of holding securities is risky.

Options

• True
• False

2.Allotment of securities take longer time when in physical mode.

Options

• True
• False

3.Transfer of securities is easier in electronic mode.

Options

• True
• False

4.Bad delivery is likely in Depository System.

Options

• True
• False

5.Depository system began in the USA for the first time in the world.

Options

• True
• False

6.India has a multi Depository System.

Options

• True
• False

7.Depository system is very similar to banking system.

Options

• True
• False

8.DP is a constituent of Depository System.

Options

• True
• False

9.DP is an agent of Depository.

Options

• True
• False

10.A Bank can work as a DP.

Options

• True
• False

11.DRF is required for conversion from physical to electronic.

Options

• True
• False

12.ISIN is a unique code given to the specific securities.

Options

• True
• False

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1.Find the odd one.

Options

• Elimination of storage of Certificates
• Theft of Certificates
• Torn Certificates

2.Find the odd one.

Options

• NSDL
• CDSL
• NBFC

3.Find the odd one.

Options

• Depository
• DP
• RBI

4.Find the odd one.

Options

• DP
• BO
• State Government

5.Find the odd one.

Options

• Issuer
• BO
• Central Government

6.Find the odd one.

Options

• DRF
• RRF
• PPF

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