Explanation:

All FIIs, Sub Accounts & QFIs are deemed to be Foreign Portfolio Investors from June 1, 2014.

Explanation:

A DP, while conducting any business with a client, acts as an agent of the depository and is liable to the clients for all the acts and deeds performed by it.

Explanation:

Persons belonging to one of the following categories are eligible to become a DP:

1. A public financial institution as defined in section 2(72) of the Companies Act 2013.

2. A bank included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934.

3. A foreign bank operating in India with approval of the Reserve Bank of India etc.

Explanation:

As per SEBI rules : DPs who maintain electronic records should ensure the integrity of the data processing systems. All necessary precautions should be taken to ensure that the records are not lost, destroyed or tampered with. In the event of loss or destruction, sufficient back-up of records should be taken and made available at all times at a different place.

Explanation:

The word `transmission’ means devolution (transfer) of title to shares, for example, devolution by death, lunacy, bankruptcy, winding-up (in case of corporate) etc.

Explanation:

Corporate actions affect the holder of the securities. Thus, whenever any corporate action takes place it is necessary to determine the eligible Beneficial Owner’s (BOs) as of a particular date who are entitled to the corporate benefits. The issuer thus announces a cut-off date to determine the BOs of the securities as of that date.

This date is referred to as the `Record Date’ and depository system provides holding report i.e. list of BOs having holdings in the ISIN of the issuer as of end of the day of record date.

Explanation:

On receipt of a Remat Request Form (RRF) from the client, the DP forwards it to the Issuer or its R&T Agent. The Issuer/R&T Agent, after validating the RRF, confirms to the depository electronically that the RRF has been accepted.

Thereafter, the Issuer/R&T Agent despatches the security certificates arising out of the rematerialisation request within a period of 30 days from receipt of such RRF directly to the client.

Explanation:

By freezing an account for debits only (preventing transfer of securities in / out of the account), the client can receive securities in his account.

The client can receive securities but cannot transfer out the securities from his demat account.

Explanation:

The procedure for dematerialisation of CD is same as that carried out for equity shares. The client will submit a request to the DP, in the DRF (Dematerialisation request form), along with the original CD certificate/s to be dematerialised.

The DP would give an acknowledgement (DRF acknowledgement portion) to its client confirming the acceptance of the CD for dematerialisation.

Explanation:

For ease of operation and elimination of redundancies, a clause has been included in the standard format of Rights and Obligations document.

This clause enables clients to give Standing Instructions to DPs, at the time of opening the account itself, for receiving securities to the credit of their accounts without any further instruction from them.

Explanation:

A certificate of registration issued to a DP is valid unless it is suspended or cancelled by SEBI.

Explanation:

A Depository Participant may choose to terminate its participation in the depository by giving a notice of not less than 30 days. On receipt of such notice, the depository may cease to provide any service or act for the DP.

The Depository should notify the DP, other participants, clients of the surrendering DP and SEBI within seven days of this action.

Explanation:

There are several major players in the primary market. These include the merchant bankers, mutual funds, financial institutions, foreign portfolio investors (FPIs) and individual investors.

In the secondary market, there are the stock exchanges, stock brokers etc.

Explanation:

Sale by Depository Client – In case of sale of government securities by a depository client to a buyer who maintains an SGL account with other eligible entity, the selling client should submit Inter-SGL Trade Sale Instruction in the prescribed format to the DP.

Explanation:

1. The Client should make a request in writing specifying reasons for change in signature. 2. New signature should be duly attested by Client’s banker, only in case where the beneficiary owner cannot come personally. 3. Client should visit DP’s office personally and produce valid proof of identity. Clients opening account with NSDL DPs, needs to bring the latest transaction statement of its account. 4. In the presence of officials of DP, Client should affix his/her new signature. 5. If the client cannot come in person, the request in writing should contain the old and the new signature and the same should be attested by the BO’s banker.

Explanation:

In terms of Section 124 (6) of Companies Act, 2013 and the Rules notified thereunder, the shares in respect of which dividend has not been paid or claimed for a period of 7 consecutive years or more, are required to be transferred by the company to the Investor Education and Protection Fund Authority (IEPF).

Explanation:

A transfer is the legal change of ownership of a security in the records of the issuer. For effecting a transfer, certain legal steps have to be taken like endorsement, execution of a transfer instrument and payment of stamp duty.

Under a depository system, transfer of security occurs merely by passing book entries in the records of the depositories, on the instructions of the beneficial owners.

Explanation:

In case partial partition of the HUF, if desired by one or more members, the Karta shall transfer the securities to the said members who seek partition and HUF account shall continue.

Explanation:

Equity linked saving schemes are a type of Equity Mutual Fund with tax benefits.

Debentures, Commercial paper and Treasury bonds are all debt instruments.

Explanation:

Any trade that is cleared and settled without the participation of a clearing corporation is called off-market trade, i.e., transfer from one beneficiary account to another due to a trade between them.

The account holder is required to specify the date on which instruction should be executed by mentioning the execution date on the instruction.The instruction will be executed on the execution date.

Explanation:

The applicant shall be mandated to appoint a Compliance Officer, who would interact with the depository and on the DP’s behalf for compliance with the Bye-Laws and Business Rules and resolving investors/clients’ grievances.

Explanation:

A beneficial owner’s account is an ownership account. The holder/(s) of securities in this type of account owns the securities.

For example, Mr. Suresh who is a retail investor trades in the securities market. The securities which he buys or sells will be kept in his beneficial owner account which he would have to open with a DP.

Explanation:

Dematerialisation is the process of holding the securities in a fungible form. They do not bear any distinguishable features like distinctive number, folio number or certificate number.

Fungible means “movable things that are standardised, so that one unit is essentially the same as another which may be estimated and replaced by weight, number and measure”.

Explanation:

The instructions are executed on the execution date. If there is adequate balance in the account, such quantity will be debited on the execution date. If adequate balances do not exist in the account, then instruction will wait for adequate balances till the end of the execution day.

In cases where adequate balances are not received till the end of the day of the execution date, the instruction will fail.

Explanation:

The Depositories Act, 1996, ushered in an era of efficient capital market infrastructure, improved investor protection, reduced risks and increased transparency of transactions in the securities market.

Explanation:

Non-individuals including society, trust, body corporate, Hindu Undivided Family (HUF), holder of power of attorney cannot nominate.

Explanation:

Upon the death of the sole holder or the death of all the joint holders, as the case may be, the nominee shall request the DP in writing alongwith an original death certificate for transmitting the securities covered by the nomination to the account of the Nominee, held with any Depository, if the nominee has a demat account in individual capacity with another DP.

If the Nominee does not have an account with the Depository, the Nominee shall be required to open an account with any Depository.

Explanation:

Debt instruments can be classified into different categories like bonds, debentures, commercial paper, government securities, treasury bills, etc. and can be issued by Banks, Corporates, Government etc.

Government security means a security created and issued by the Central Government or a State
Government for the purpose of raising a public loan.

Explanation:

Locked-in securities cannot be invoked before the lock-in release date.

Explanation:

A CM is required to track the securities, which it has received for pay-in. A CM can obtain such information from the following sources:
(1) Its clients: CM may contact selling clients to inquire whether they have delivered securities.
(2) Its DP: CM may contact its DP to find out the deliveries received into its CM settlement account.
(3) Internet – using facilities provided by the depositories such as ‘IDeAS’ of NSDL and ‘easi’ and ‘easiest’ of CDSL

Explanation:

Explanation:

Its under SECTION 12 of the Depositories Act.

Explanation:

When a rematerialisation request is sent, the securities in the client account will not be available for delivery/transfer immediately.

The client will have to wait for physical certificates to reach him before they can be sold. Thus the client would encounter temporary illiquidity on the securities requested for in rematerialised form.

Explanation:

The transaction statements can be provided electronically, provided an agreement in the prescribed format has been executed with the clients for this and adequate security measures have been taken.

SEBI allows the DP’s to provide transaction statements and other documents under Digital Signature, as governed under Information Technology Act, 2000

Explanation:

Explanation:

Explanation:

Cash corporate actions involve distribution of monetary benefits, e.g., dividend and interest etc.

Non-cash corporate actions involve distribution of benefits other than cash such as bonus issues, offer of shares on right basis, conversion of securities, etc.

Explanation:

In Derivatives trading, there is no delivery of securities involved. So there is no off market transfer of securities.

Explanation:

Any trade that is cleared and settled without the participation of a clearing corporation is called off-market trade.

Large deals between institution, trades among private parties, transfer of securities between a client and a sub-broker, large trades in debt instruments are normally settled through off-market route.

Explanation:

Nomination can be made by individuals holding beneficiary owner accounts on their own behalf singly or jointly.

Explanation:

DPs are required to open separate accounts, for their own investments, thereby keeping the `beneficial owner’ accounts separate. This is to ensure that there is no co-mingling of their assets with that of their clients.

Explanation:

In a pledge / hypothecation transaction, the borrower is called the PLEDGOR and the lender is called the PLEDGEE.

Explanation:

The Depository participants scrutinizes the form of transfer, the DRF-GS and the certificates.

Explanation:

An investor in government securities holding electronic balances in the depositories SGL-2 account can convert them into physical certificates or to book entry form by the process of rematerialisation.

For this, an application has to be made to the depository, through the DP, in the Rematerialisation Request Form (RRF-GS).

Explanation:

To encourage issue of securities in demat form, SEBI has stated that the issuer shall be required to enter into an agreement with all the depositories.

Explanation:

The Depository electronically intimates, on a daily basis, all dematerialisation requests to the respective Issuer or its R&T Agent. The Issuer or its R&T Agent have to verify the validity of the security certificates.

After such verification, the Issuer or its R&T Agent intimates the depository and authorizes an electronic credit for that security in favour of the Client. On receipt of such intimation, the depository makes the credit entries in the account of the Client concerned.

Explanation:

The depository acts as a R&T Agent and discharges RTA functions for G-Secs (Government Securities).

Explanation:

The Pledgor (borrower) can request for un-pledging / closure of pledge/hypothecation after the performance of the underlying agreement.

Explanation:

While processing a pledge/hypothecation request, the DP should take care with regard to the following steps/points:

1. Ensure that the instruction form is submitted in duplicate. 2. Pledgor DP and Pledgee DP each shall create at least two users to implement the Maker-checker feature. 3. Ensure that all compulsory fields in the instruction form are entered. 4. Ensure that request for confirmation of pledge is given before the closure date mentioned in the instruction form (not applicable in case of NSDL)

Explanation:

In a clearing member account, the securities are always kept in a bucket of specific market type and settlement number. The clearing member may have to move securities from one bucket with a different market type-settlement number combination to another bucket from where pay-in is to be effected.