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Question
Explain the following term/concept:
Depository Participant (DP)
Solution
- It is the agent of the Depository.
- DP is registered under the SEBI Act. It enjoys rights and obligations as specified under the SEBI (Depository and Participants) Regulations of 1996.
- It is an intermediary appointed by Depository.
- DP acts as a link between the Depository and the investor.
- It directly deals with customers. It sends statements of accounts periodically.
- It functions like a securities bank.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is a constituent of depository system.
Select the correct answer from the options given below and rewrite the statement.
Demat account is opened by ______.
State whether the following statement is true or false.
DP is a constituent of Depository System.
Find the odd one.
Complete the sentence.
Link between Depository and Investor is ______.
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Account of securities of the Investors is maintained by ______.
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The process which converts physical securities in electronic form is ______.
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The process which converts digital securities in physical form is ______.
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Answer in one sentence.
What is a DP?
Correct the underlined word and rewrite the following sentence.
Demat accounts are opened and maintained by the Depository.
Explain Depository as constituent of Depository System.
Answer in brief.
Explain DP as the constituent of Depository system.
Justify the following statement.
DP is an important constituent of Depository system.
