Finance · Financial Markets
Examine the following statements concerning the Depository System and the role of Depositories in the Indian capital market. Statement 1. A Depository is like a bank for securities where they are held in electronic form and the transfer of ownership occurs through simple account entries. Statement 2. In India, the two main depositories are the National Securities Depository Limited (NSDL) and the Central Depository Services India Limited (CDSL). Statement 3. A Depository Participant (DP) is an agent of the depository who provides depository services to the investors and they must be registered with SEBI. Statement 4. Dematerialization is the process of converting physical share certificates into electronic form while Rematerialization is the reverse process. Which of the following is true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only Statement 1 is correct.
- 2All statements are correct.✓
- 3Statement 3 and Statement 4 are correct.
- 4Statement 1 and Statement 2 are correct.
Correct answer
All statements are correct.
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