2.  It is system where by it transfer and
settlement of scrips take place not through
the traditional method of transfer deeds and
physical delivery of scrips through the
modern system of effective transfer takes of
ownership of securities by means of book
entry on the ledgers of the depository without
physical movement of scrips

3. : A depository is a firm
wherein the securities of an investor are held
in electronic form and who carries out of
transaction of securities by means of book
entry. The depository act as defector owner
of securities lodged with it limited purpose of
transfer of ownership . It function as a
custodian of securities of client. There two
depository in India.(a) national securities
depository ltd (b) central depository services
ltd

4. A Participant is an agent
of the depository .He function as
bridge in between the depository and
beneficial owners. He maintains the
ownership record of every beneficial
owner in the book entry form.
 Banking services can be availed
through a branch whereas depository
services can be availed through a DP

5. Beneficial owner
means a person whose name is
recorded as such with depository. A
beneficial owner of securities who has
lodged his securities with the
depository in the form of book entry.
He has all the rights and liabilities
associated with securities.

6. The issuer is a company
which issues the security. It maintains
a register for recording the name of
registered owner of securities, the
depositors. these issues send a list of
shareholders ,who opt for the
depository system ,to the depositors.

7.  A safe and convenient way to hold securities;
 Immediate transfer of securities;
No stamp duty on transfer of securities;
 Elimination of risks associated with physical
certificates such as bad delivery, fake
securities, delays, thefts etc.
 Reduction in paperwork involved in transfer of
securities;
 Reduction in transaction cost;
 No odd lot problem, even one share can be
traded;
 Nomination facility;

8.  Change in address recorded with DP gets
registered with all companies in which investor
holds securities electronically eliminating the
need to correspond with each of them separately;
 Transmission of securities is done by DP
eliminating correspondence with companies;
 Automatic credit into demat account of
shares, arising out of
bonus/split/consolidation/merger etc.
 Holding investments in equity and debt
instruments in a single account.

9.  Transmission is the process by which securities
of a deceased account holder are transferred to
the account of his legal heirs / nominee. Process
of transmission in case of dematerialised
holdings is more convenient as the transmission
formalities for all securities held in a demat
account can be completed by submitting
documents to the DP, whereas in case of physical
securities the legal heirs/nominee/surviving joint
holder has to independently correspond with
each company in which securities are held.

10.  Transmission is the process by which securities
of a deceased account holder are transferred to
the account of his legal heirs / nominee. Process
of transmission in case of dematerialised
holdings is more convenient as the transmission
formalities for all securities held in a demat
account can be completed by submitting
documents to the DP, whereas in case of physical
securities the legal heirs/nominee/surviving joint
holder has to independently correspond with
each company in which securities are held.

11.  Dematerialisation is a process where in share
certificates held in physical form converted
into electronic form and credited to demat
account of an investor opened with a
depository participants.

13. 1 The investor has to open a beneficiary
account With a depository participant(DP) of
his choice to hold shares in demat.
2 Investor has to submit Demat Request form
(DRF) and share certificates to DP who in turn
will check whether securities are available for
demat.

15. 3 The investor should deface the share
certificates by stamping ‘surrendered for
dematerialisation’ and DP will punch two
holes on the name of the company and
draw two parllel lines across the face of the
certificates.
4 DP enter the demat request to be sent to
depository. DP despatches the physical
certificates along with the demat request for
to the registrar and tranfer agent(TRA) or
issuer company.

16. 5 depository records the details of the
electronic requests in the system and forward
the request to RTA or issuer company.
6 RTA or the issuer company on receiving the
electronic request and the physical
document verifies and checks them.
once the RTA company finds that the
document are in order, dematerialisation of
the securities is electronically confirmed to
the depository.

17. 5 depository records the details of the
electronic requests in the system and forward
the request to RTA or issuer company.
6 RTA or the issuer company on receiving the
electronic request and the physical
document verifies and checks them.
once the RTA company finds that the
document are in order, dematerialisation of
the securities is electronically confirmed to
the depository.

18. 7 Depository credits the dematerialised
securities to the beneficiary account of the
investor and intimates the DP electronically.
the DP then issue a statement of
transaction of the client.