GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reduced Risk of stolen, fake, forged shares
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Reduction in the share transfer time to the buyer
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No Stamp duty on transfer of shares in dematerialized form
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All of the above
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Detailed explanation-1: -Immediate transfer of securities. No stamp duty on transfer of securities. Elimination of risks associated with physical certificates such as bad delivery, fake securities etc. Reduction in paperwork involved in transfer of securities.
Detailed explanation-2: -In the same way, depositories help you in storing all your financial assets such as stocks, bonds, mutual funds, exchange traded funds (ETFs), certificates of deposits etc. in electronic or Demat form. They help in keeping your digital transactions safe and convenient.
Detailed explanation-3: -A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered depository participant. It also provides services related to transactions in securities. 2.
Detailed explanation-4: -Serves as a link between public companies and investors/shareholders. Eliminates risk related to owning physical financial securities. Allows the provision of loans of mortgages to interested parties. Reduced paperwork and accelerates the process of transferring securities. 20-Feb-2023
Detailed explanation-5: -The depository acts as a connection between public companies and investors. A depository acts as a link between the companies and the investors as they issue financial securities. Removes the risk of theft and the burden of holding shares physically. Reduces Paperwork. Provision of Loans. 30-Nov-2022