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Question
Justify the following statement.
ISIN is necessary component of Demat.
Solution
- ISIN is a code that uniquely identifies a specific securities issue.
- It is a standard numbering system which is accepted globally.
- ISINs in any country are allotted by that country’s National Numbering Agency (NNA).
- In India, ISINs are assigned by SEBI to NSDL (for demated shares). SEBI works as NNA in India.
- For Government securities, allotment of ISIN is done by the RBI.
- ISIN consists of a 12 (Twelve) digit alpha-numeric code which is divided in three parts.
- The DP will be able to transfer the securities to/from the investor’s account only on the basis of the ISIN.
- Thus, ISIN is a necessary component of demat.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Demated shares are ______.
Select the correct answer from the options given below and rewrite the statement.
______ is a unique code given to a security.
Select the correct answer from the options given below and rewrite the statement.
______ has to apply for ISIN.
Write a word or a term or a phrase which can substitute the following statement.
This process converts securities into electronic form from physical form.
Write a word or a term or a phrase which can substitute the following statement.
This process converts securities into physical form from electronic form.
Complete the sentence.
The unique code identifying a security is ______.
Answer in one sentence.
What is Dematerialisation?
Answer in one sentence.
What is Rematerialisation?
Answer in one sentence.
What is ISIN?
Correct the underlined word and rewrite the following sentence.
Depository Participant in India has to register under the partnership act.
Correct the underlined word and rewrite the following sentence.
ISIN is a code given to a company.
Correct the underlined word and rewrite the following sentence.
ISIN of Indian Government securities is issued by NSDL.
Arrange in proper order.
- Gets Statement of Accounts
- Open Demat Account
- Submit DRF
Explain the following term/concept.
Rematerialization
Explain the following term/concept.
Fungibility
Explain the following term/concept.
ISIN
Distinguish between the following:
Dematerialization and Rematerializotion
ISIN is a code given to a company.
