New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    When will the depository indemnify the beneficial owner

    if any loss is caused to such beneficial owner?
    A In case the loss is caused by the negligence of issuer Correct Answer Incorrect Answer
    B In case the loss is caused by the negligence of depository Correct Answer Incorrect Answer
    C In case the loss is caused by the negligence of depository participant Correct Answer Incorrect Answer
    D In case the loss is caused by the negligence of depository or depository participant Correct Answer Incorrect Answer
    E Depository will not indemnify the beneficial owner Correct Answer Incorrect Answer

    Solution

    Section 16 of Depository Act - Depositories to indemnify loss in certain cases— (1) Without prejudice to the provisions of any other law for the time being in force, any loss caused to the beneficial owner due to the negligence of the depository or the participant, the depository shall indemnify such beneficial owner. (2) Where the loss due to the negligence of the participant under sub-section (1) is indemnified by the depository, the depository shall have the right to recover the same from such participant

    Practice Next