Business Studies

Write notes on(Any Three)
Constituents and concepts in Depository system.


SOLUTION
1. Depository: -A depository can be defined as 'an institution which transfers the ownership of securities in electronic mode on behalf of its members.' A depository is a nominee of the investors, who keeps the shares on their behalf. Therefore, the depository acts as a custodian of securities 

2. Depository participant: -Depository participant is the representative of the Depositor. Depository participant acts as intermediary between investors and depositories. An investor has no direct access to the Depositaries. The investor has to trade his securities/share through the Depository Participant. The depository participant has an identity number for identification. It has to maintain accounts of securities of each investor. Depository Participant gives intimation about holdings from time to time by sending a statement of holding or giving a pass-book. If investor desires the services of Depository, he has to open an account with Depository through a Depository Participant. At present in India, there are two depositories. They are 
National Securities Depositories Limited (NSDL) 
Central Depositories Services Limited (CDSL) 

3. Beneficial owner: -An investor is known as 'beneficial owner'. He is the person in whose name Demat account is opened. His name is recorded with the depository. He enjoys the rights and benefits of a member such as to get dividend, to get bonus shares, to vote at meeting. 
4. Issuer Company: -It is a company which makes an issue of securities. It must register itself with a depository. 
5. Dematerialisation: -it is the process in which share certificate are converted into electronic form. 
6.Fungibility :- The shares in depositories are fungible.They don't have distinctive number for identification.
7.Rematerialisation :- Rematerialisation is the process by which shares in electronic form are reconverted into physical form.
8.International Securities identification Number (ISN):- it is an identification number given to a security of an issuer company at the time of admitting such security in the depository system. 
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Subjective Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 204
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Match List I with List II and select the correct answer using the codes given below the lists.
List I                                                       List II
A. Brand Equity                                1. Tangible
B. Plant & Machinery                       2. Current
C. Advances to suppliers                 3. Intangible
D. Deferred revenue expenditure    4. Fictitious
  • A. A-3, B- 1, C-4, D-2
  • B. A-3, B- 1, C-2, D-4
  • C. A-1, B- 3, C-2, D-4
  • D. A-1, B- 3, C-4, D-2

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Subjective Medium
Explain briefly the purposes for which long term finance is required by business concerns?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
What is Stock Index Future?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
Debentures are _______ charge funds and do not participate in ________ of the company.
  • A. fixed, loss
  • B. fixed, profit
  • C. fluctuating, loss
  • D. fluctuating, profit

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
The means of obtaining financial resources that involves the sale of part of the ownership of the business is called ______.
  • A. bankruptcy
  • B. commercial loans
  • C. debt financing
  • D. equity financing

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer