Answer in one sentence.
1. What is Depository System ?
Ans. Depository system hold securities in electronic form, where transfer and settlements of securities are done electronically.
2. Give examples of action termed as corporate action.
Ans. Examples of corporate actions are Payment of dividend, issue of bonus shares, Offering of rights shares, Merger and Acquisitions, etc.
3. When was Depository Act passed in India ?
Ans. In India, Depository act was passed in 1996.
4. What is a DP ?
Ans. D.P. is the agent of depository registered under the SEBI Act and acts as a link between Depository and the Investor.
5. What is Dematerialisation ?
Ans. Dematerialisation is a process whereby a client can get physical certificates converted into electronic mode.
6. What is Rematerialisation ?
Ans. Rematerialisation is the process where by a client can get his electronic securities converted into physical certificates.
7. What is ISIN ?
Ans. ISIN stands for International Securities Identification Number and is a 12 digit code that assists in identifying securities such as stocks, equities, bonds, debt, etc.
8. Name the depositories in India ?
Ans: NSDL and CDSL are the two depositories in India, which are registered with SEBI.