Comment on the following: All securities in depositories shall be in fungible form.
CS Executive · Capital Markets & Securities Laws · PYQS · June 2016
Comment on the following: All securities in depositories shall be in fungible form.
Answer & Explanation:
Section 9 of the Depositories Act, 1996 states that all securities in depositories shall be in fungible form i.e. all certificates of the same security shall become interchangeable in the sense that investor loses the right to obtain the exact certificate he surrenders at the time of entry into depository. It is like withdrawing money from the bank without bothering about the distinctive numbers of the currencies.
Topics: Securities Laws
Related Questions in this Topic
- Comment on the following: 'Insider' means any person who is or was connected with the company or is deemed to have been ...
- Comment on the following: Depository participant provides link between the company and investors.
- Comment on the following: The recognised stock exchange has powers to make rules for restricting voting rights.
- Comment on the following: 'Custodian of securities' means any person who carries on or proposes to carry on the business...
- What is 'price sensitive information'? Which information is deemed to be price sensitive information? State with reasons...