Question:
In the ________________________________, a securities account can be opened, all shares can be deposited in it. These can be withdrawn/sold at any time, and instruction to deliver or receive shares on behalf of the investor can be given.
In the ________________________________, a securities account can be opened, all shares can be deposited in it. These can be withdrawn/sold at any time, and instruction to deliver or receive shares on behalf of the investor can be given.
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Depositories like NSDL and CDSL in India ensure safe and seamless electronic trading, reducing paperwork and risks.
Updated On: Jan 13, 2026
- Primary market
- Stock exchange
- Bank
- Depository
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Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Understanding the Role of a Depository
A depository is a financial institution that holds securities (shares, bonds) in electronic form, facilitating trading and investment. Step 2: Identifying the Correct Option
- The primary market (A) deals with new securities issuance.
- The stock exchange (B) is a marketplace for buying and selling securities.
- A bank (C) manages financial transactions but does not handle securities in the described manner.
- A depository (D) allows investors to store, sell, and transfer securities electronically.
Conclusion: The correct answer is (mathbf{(D)}), as a depository enables secure storage and management of securities.
A depository is a financial institution that holds securities (shares, bonds) in electronic form, facilitating trading and investment. Step 2: Identifying the Correct Option
- The primary market (A) deals with new securities issuance.
- The stock exchange (B) is a marketplace for buying and selling securities.
- A bank (C) manages financial transactions but does not handle securities in the described manner.
- A depository (D) allows investors to store, sell, and transfer securities electronically.
Conclusion: The correct answer is (mathbf{(D)}), as a depository enables secure storage and management of securities.
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