Explanation:

The pledgor (borrower of funds) initiates the creation of pledge/hypothecation through its DP and the pledgee instructs its DP to confirm the creation of the pledge.

Explanation:

The depository may conduct entrance examinations and/or interviews, to examine the knowledge of the DP (and its staff) related to the operational, functional and technical aspects of the depository.

Explanation:

In the depository system, the securities in dematerialised form are not identified by distinctive numbers and certificate numbers as in the physical environment. Thus all securities in the same class are identical with each other and are interchangeable.

Explanation:

On issue of secured debentures, the Issuer initially allots Letter of Allotment (LOA) till the charges are created. On creation of the charge, debenture certificates are issued in lieu of the LOA.

Explanation:

CDSL allows change in name due to typographical errors at DP end subject to maintenance of prescribed documents.

Explanation:

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

Explanation:

One of the most important and basic services provided by the depositories in India is to facilitate transfer of securities from one account to another at the instruction of the account holder. In the depository system both transferor and transferee have to give instructions to its DPs for delivering (transferring out) and receiving of securities.

Securities can be easily transferred from one depository to another by filling up the Delivery Instruction Slips (DIS).

Explanation:

All corporate investors have to submit documents as prescribed by SEBI along-with the stipulated KYC Application Form (Part I) and Account Opening Form (Part II) as per the format.

An authorised official of the DP shall verify the copies of the proof of address / identity documents with the original documents and write or put a stamp with the words: “verified with original” and affix his/her signature on the documents submitted by the Client, while exercising such due diligence.

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:

Inter-Settlement Transfers : 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.

To effect this movement a clearing member can give an instruction to move securities from one settlement to another settlement which is called ‘inter-settlement’ transfer.