Depository Operations Certification Free Demo Test 10

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.