Depository Operations Certification Free Demo Test 8

Explanation:

The applicant shall be mandated to appoint a Compliance Officer, who would interact with the depository and on the DP’s behalf for compliance with the Bye-Laws and Business Rules and resolving investors/clients’ grievances.

Explanation:

A beneficial owner’s account is an ownership account. The holder/(s) of securities in this type of account owns the securities.

For example, Mr. Suresh who is a retail investor trades in the securities market. The securities which he buys or sells will be kept in his beneficial owner account which he would have to open with a DP.

Explanation:

Dematerialisation is the process of holding the securities in a fungible form. They do not bear any distinguishable features like distinctive number, folio number or certificate number.

Fungible means “movable things that are standardised, so that one unit is essentially the same as another which may be estimated and replaced by weight, number and measure”.

Explanation:

The instructions are executed on the execution date. If there is adequate balance in the account, such quantity will be debited on the execution date. If adequate balances do not exist in the account, then instruction will wait for adequate balances till the end of the execution day.

In cases where adequate balances are not received till the end of the day of the execution date, the instruction will fail.

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:

Non-individuals including society, trust, body corporate, Hindu Undivided Family (HUF), holder of power of attorney cannot nominate.

Explanation:

Upon the death of the sole holder or the death of all the joint holders, as the case may be, the nominee shall request the DP in writing alongwith an original death certificate for transmitting the securities covered by the nomination to the account of the Nominee, held with any Depository, if the nominee has a demat account in individual capacity with another DP.

If the Nominee does not have an account with the Depository, the Nominee shall be required to open an account with any Depository.

Explanation:

Debt instruments can be classified into different categories like bonds, debentures, commercial paper, government securities, treasury bills, etc. and can be issued by Banks, Corporates, Government etc.

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

Explanation:

Locked-in securities cannot be invoked before the lock-in release date.

Explanation:

A CM is required to track the securities, which it has received for pay-in. A CM can obtain such information from the following sources:
(1) Its clients: CM may contact selling clients to inquire whether they have delivered securities.
(2) Its DP: CM may contact its DP to find out the deliveries received into its CM settlement account.
(3) Internet – using facilities provided by the depositories such as ‘IDeAS’ of NSDL and ‘easi’ and ‘easiest’ of CDSL