Depository Operations Certification Free Demo Test 6

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.