New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Any person who has entered into an agreement with any

    depository for availing its services shall surrender ………..
    A Registration certificate to the depository Correct Answer Incorrect Answer
    B Certificate of Security to the issuer Correct Answer Incorrect Answer
    C Certificate of Security to the depository Correct Answer Incorrect Answer
    D Registration certificate to the issuer Correct Answer Incorrect Answer
    E Certificate of security to the depository participant Correct Answer Incorrect Answer

    Solution

    Section 6 of the Depository Act - Surrender of certificate of security—(1) Any person who has entered into an agreement under section 5 shall surrender the certificate of security, for which he seeks to avail the services of a depository, to the issuer in such manner as may be specified by the regulations. (2) The issuer, on receipt of certificate of security under sub-section (1), shall cancel the certificate of security and substitute in its records the name of the depository as a registered owner in respect of that security and inform the depository accordingly. (3) A depository shall, on receipt of information under sub-section (2), enter the name of the person referred to in sub-section (1) in its records, as the beneficial owner.

    Practice Next