Securities- Depositories and Participants Flashcards
1
Q
Application for certificate of registration as a participant?
A
Form F First Schedule - through the depository
2
Q
The Depository shall forward the application to Board along with :
- Recommendations
- Certifying that participant complies with the eligibility criteria - including ADEQUATE INFRASTRUCTURE
A
Not later than 30 days
3
Q
Time line for removal of objections by Board
A
30 days
4
Q
Before granting certificate of registration, the Board may ask for further information from?
A
- Applicant
- Depository
5
Q
Who may appear before the Board for grant of certificate as a Participant ?
A
- Applicant ,
- Authorized Representative
6
Q
Who can apply for becoming a participant?
A
- Public Financial Institution
- Bank included in schedule 2 of RBI Act, 1934
- Foreign Bank Operating in India
- State Financial Corporation
- Institutions engaged in providing financial services
- Custodian of Securities
- Clearing house
- Clearing Corporations
- Stock Broker
- Self Clearing Member fulfilling net-worth requirements as provided under SEBI (Stock Brokers) Regulations, 1992
- Non banking financial company having networth of 50 lakhs
- Registrar to an issue and Share transfer agent having net-worth of 10 crores
7
Q
A stock broker applying to become a participant should ensure a net-worth of?
A
Three crores - within one year of SEBI (Depositories and Participants) Amendment Regulations 2022
Five Crores- within two years
8
Q
An applicant applying to become a participant must have ?
A
- Infrastructure
- System
- Safeguards
- Trained Staff
ISS TS
9
Q
Board shall grant certificate as participant in form?
A
Form G First Schedule
10
Q
The participant will have to pay registration fee within?
A
15 days from intimation of board
11
Q
An applicant will get the certificate of registration as participant only if the depository through which it applies holds a ?
A
Certificate of Commencement of Business under regulation 16
12
Q
The participant shall address the grievances of beneficial owners within?
A
30 days of the receipt of complaint
13
Q
The participant shall keep the depository informed about the ?
A
Number and Nature of redressals
14
Q
Certificate of Registration is valid until?
A
Cancelled or Suspended by Board
15
Q
The registration fee has to be paid by a Participant for every 5 years from?
A
6th year of the date of grant of certificate or registration or initial registration granted prior to SEBI ( change in conditions of registration of certain intermediaries) Amendment regulations 2016
16
Q
The Registration fee by a participant shall be paid by the expiry of ?
A
One Month prior to the expiry of block for which fee has been paid
17
Q
Code of Conduct of Participant?
A
Part A 3rd Schedule
18
Q
A participant who has been granted a certificate of registration may act as a participant of another depository ?
A
Without obtaining a separate certificate of registration - subject to approval from the other depository
19
Q
A Participant shall pay annual fees
A
Separately for each depository
20
Q
The Depositories , Participants, Issuers , Issuers Agents - DPIIA shall have rights and obligations laid down in?
A
- Depositories Act
- Bye-laws
- AGREEMENTS entered by them
21
Q
What will each depository state in its bye-laws?
A
Specific Securities which are eligible to be held in dematerialised form
22
Q
Are unlisted securities eligible to be held in dematerialised form?
A
Yes
23
Q
Which securities are eligible other than unlisted securities to be held in dematerialized form?
A
- Stocks
- Shares
- Scrips
- Bonds
- Debenture
- Debenture Stock
- Indian Depository Receipts
- Electronic Gold Receipts
- Marketable securities of like nature of Incorporated Company and other body corporate
- Units of Mutual Fund
- Rights under Collective Investment Scheme
- Venture Capital Funds
- Commercial Paper
- Certificates of Deposit
- Securitised Debt
- Money Market Instruments
- Government Securities
18 Unlisted Securities - Other specified by Board
24
Q
Who can exercise the option to hold securities in dematerialised form?
A
- Issuer
- Investor
25
Who will enter into an agreement to enable the investor to hold securities in dematerialised form?
Issuer will enter into agreement with depository
26
When will an agreement between issuer and depository not be required ?
1. Depository itself is the issuer
2. Central Government or State Government is the issuer of Government Securities
27
Every depository shall have systems and procedures which will enable it to coordinate with ?
1. Issuer or issuers' agent
2. Participant
28
Every depository will have systems and procedures to enable it to reconcile the?
Records of ownership of securities - on DAILY BASIS
29
Every depository will maintain continuous electronic means of communication with ?
1. Issuer
2. Issuers' agent
3. Participants
4. Clearing house
5. Clearing Corporations
6. Other Depositories
30
The depository shall satisfy the Board that it has mechanism to ensure that the interests of ___ are adequately protected?
Person buying and selling securities held in the depository
31
Every depository shall allow any participant to withdraw or transfer its account if ?
Request for withdrawal or transfer is in accordance with conditions stipulated in the bye-laws of the depository
32
Every depository shall have adequate mechanism for the purpose of RME the?
Depository's CSPS - Control Systems, Procedures and Safeguards
33
Every depository shall cause an inspection of its CSPS to be carried out ?
ANNUALLY - forward report to Board
34
A depository shall have adequate Business Continuity Plan for?
1. Data
2. Electronic records
Prevent , prepare, recover from any disaster
35
Wind-down plan means ?
Plan to transfer :
1. Beneficial owner accounts
2. Two operational powers of depository to an alternative institution
36
Why is wind down plan needed ?
1. Erosion of net-worth of depository
2. Insolvency
3. Inability to provide critical depository services
37
When the records are kept electronically by a depository, it shall ensure?
1. The integrity of automatic data processing systems is maintained at all times .
2. Take precautions so that data is not lost, destroyed or tampered
38
Every depository to maintain following records?
1. Securities dematerialised and rematerialised
2. Transferor, transferee, date of transfer
3. Register of Beneficial Owners
4. Details of holding of securities at the end of each day
5. Records of instructions received and sent
6. Approval, notices, entry , cancellation of pledge or hypothecation
7. Details of participants
8. Securities declared to be eligible for dematerialisation
39
Every Depository will extend co-operation to?
1. Issuer
2. Issuers' Agent
3. Beneficial owner
4. custodian of securities
5. clearing house/ clearing corporations
6. other depositories
40
In case a beneficial owner needs consolidated account statement in respect of all demat accounts held by him?
The Depository shall enter into necessary agreements for sharing such information.
41
No depository shall assign or delegate its functions without?
Prior approval of Board
42
Every participant who wants to act as a participant on behalf of beneficial owner shall enter into an agreement with him in the manner laid down by?
Depository in its bye-laws
43
Securities of beneficial owners shall be segregated from?
1. other beneficial owners' security
2. participant's own security
44
Every entry in the beneficial owner's account shall be supported by?
1. Electronic Instructions
2. Any other mode of instruction received from beneficial owner
45
Every participant shall provide a statement of account to the beneficial owner in such form, manner, time ?
As provided in agreement with the beneficial owner .
46
Every participant shall allow the beneficial owner to withdraw or transfer from his account in such manner as specified ?
In the agreement with the Beneficial Owner
47
Every participant shall maintain electronic means of communication with ?
Each depository in which it is a participant
48
Every participant shall have adequate mechanism for the purpose of RME the participant's?
IACS
Internal accounting control and systems
49
Every participant shall reconcile records with every depository in which its is participant on a ---- basis ?
DAILY BASIS
50
Every Participant shall submit periodic returns to ?
1. Board
2. Every depository in which he is a participant
51
What will be the format of periodic returns submitted by a participant ?
Specified by :
1. Board, or
2. Bye-laws of Depository
52
Every depository shall intimate to the ____ the place where the records and documents are maintained
The Board
53
Every Participant shall intimate the ________ the place where the records and documents are maintained ?
The Board
54
Every participant shall maintain the following records and documents ?
1. Transactions entered with depository and beneficial owners
2. Securities dematerialised and rematerialised on behalf of beneficial owners
3. Instructions received from beneficial owners
4. statement of accounts provided to beneficial owners
5. Approvals, notices, entry, cancellation of pledge and hypothecation
55
Every participant shall allow ___ to enter its premises during business hours to inspect its records
Persons authorized by depository
56
If a participant enters into an agreement with more than one depository, it shall maintain the records specified in regulation 66?
Separately in respect of each depository
57
No Participant shall assign or delegate its functions to any person?
Without prior approval of depository
58
All matters regarding :
1. Transfer of securities
2. maintenance of records of holders of securities
3. Handling of physical securities
4. establishing connectivity with the depositories
shall be maintained at a single point i.e?
Either :
1. In-house by the issuer ,or
2. Share Transfer Agent registered with the Board
59
Apart from participant, who else is required to resolve grievances of beneficial owners within 30 days ?
1. Issuer or its Agent
2. Intermediary
60
Every Depository shall establish and maintain an Investor Protection Fund for?
The protection of interest of beneficial owners
61
Investor protection fund (IPF) shall not be utilized by depository for ?
Indemnifying the beneficial owners under section 16 of the Depositories Act, 1996
62
Every Depository shall credit ___ percent of its Net Profits from ____ every year to IPF
5% from depository operations
63
Any beneficial owner who has entered into an agreement with a participant, shall inform the participant about?
Details of the certificate of security which is to be dematerialised
64
The Participant shall forward the details of certificate of security to?
1. The Depository and also confirm that an agreement has been entered into between the participant and beneficial owner
2. The issuer - within 7 days of receipt - along with the certificate
65
Upon receipt of certificate of security from the participant , the issuer shall confirm to ____ in ____ days
Depository in 15 days of receipt of certificate of security
66
The issuer shall confirm to the depository that?
1. Securities mentioned in certificate of security have been listed on the stock exchange where the earlier issued securities are listed
2. Mutilate and cancel in the certificate of security and substitute in its record the name of the depository as the BO
67
When the Issuer substitutes in its record the name of the depository as a BO- it will send a certificate to this effect to the ?
1. Depository
2. Every Stock Exchange where security is listed
68
____ shall maintain a record of certificates of securities which have been dematerialised?
ISSUER
69
The issuer or his agent shall reconcile the records of dematerialised securities with?
All the securities issued by the issuer on a daily basis
70
Who will reconcile the records of dematerialized securities if the State or Central Government is the issuer ?
The Depository
71
Every issuer shall submit an audit report on _____ basis to ______
Quarterly basis starting from September 30, 2003 to concerned stock exchanges
72
The audit report submitted by the issuer to stock exchange has the purpose of reconciliation of ?
1. Total Issued capital
2. Listed capital
3. Capital held by depositories in dematerialized form
73
The audit report shall give an updated status of ?
register of members of the issuer
74
The audit report shall confirm that securities have been dematerialized as per requests within
?
21 days from receipt of request
75
If the issuer notices any difference in its issued, listed, and the capital held by depositories in dematerialized form ?
1. Depositories , and
2. Stock Exchanges
76
Every issuer or its agent shall establish continuous electronic means of communication with?
The depository with which it has entered into an agreement
77
A Depository or its associates shall not list its securities on?
A recognized stock exchange that is an associate of the depository
78
_____ will not render any investment advice about any security in publicly accessible media- whether real time or non real time ?
1. Depository
2. Participant
3. Any of its employees
79
To make any investment advice, the Depository, participants or their employees have to make a disclosure about?
Their interest - long or short in the said security
80
If a beneficial owner intends to create a pledge on a security owned by him , he will make an application to ?
The Depository through the participant
81
An application for pledge shall be forwarded by beneficial owner to participant who will then forward it to ?
Depository
82
Within 15 days of the receipt of application for pledge, the depository shall create and record the pledge after concurrence of ?
Pledgee through the participant
83
The depository shall create and record the pledge and sent an intimation to?
Participants of pledger and pledgee
84
Application for cancellation of the entry of pledge can be made by?
Pledger or the Pledgee through the participant
85
The depository on cancellation of the entry of pledge shall inform ?
The participant of the pledger (only)
86
The Pledgee may invoke the pledge and on such invocation, the depository shall?
register the pledgee as beneficial owner of such securities
87
The Depository before registering the hypothecatee as a beneficial owner shall obtain prior approval of ?
Hypothecator
88
no transfer of security in respect of which notice of pledge is in force be effected by ________ without the concurrence of ________
Participant without concurrence of Pledgee
89
Pledge includes ?
1. re-pledge of securities for margin
2. Settlement obligations of Client
3. Other purposes specified by Board
90
The Board may from time to time call for any information , documents or records from?
1. Depository
2. Governing Board
3. Shareholder
4. Applicant
5. Depository Participant
91
The Board may appoint one or more persons as inspecting officers to undertake inspection of books of accounts etc of?
1. Depository
2. Participant
3. Beneficial Owner
4. Issuer
5. Issuers' Agent
92
Before inspection, Board shall give
Not less than 10 days notice
93
Upon receiving the investigation report of Depository , Participant , etc - ______ shall take action?
The Board or Chairman including action under Chapter V of SEBI (Intermediaries) Regulations , 2008
94
Who has the power to appoint an auditor to investigate into the books of accounts of Depository, Participant, Beneficial owner, issuer, issuer agent ?
The Board
95
Controlling interest means ?
Interest of not less than 50 % of voting rights or interest
96
Someone who proposes to establish a depository must have ____ % shareholding of the depository?
15 %
97
Every Depository shall furnish a copy of its audited balance sheet and profit and loss account for preceding FY within ?
One month of holding AGM to the Board
98
A depository which has been granted a registration shall apply for commencement of business within?
One year from date of issue of certificate or registration
99
A depository shall pay to the board , a percentage of ______- collected from issuers ?
Annual Custody Charges
100
What is a strategic business unit?
Organizational unit of a company with its own mission , objectives and business strategy
It has the particular demands of one business area with appropriate technological, financial and other segregation
