Depository Operations Certification Free Demo Test 7

Explanation:

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

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:

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:

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:

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:

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:

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:

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:

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 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).