Question
Which of the following statements are true?
I.       All securities held by a depository shall be dematerialised and shall be in a fungible form. II.       Demutualisation means the segregation of ownership and management from the trading rights of the members of a recognised stock exchange III. A depository shall be deemed to be the beneficial owner for the purposes of effecting transfer of ownership of security on behalf of a registered ownerSolution
Point I –true - Section 9 of Depository Act - Securities in depositories to be in fungible form—(1) All securities held by a depository shall be dematerialised and shall be in a fungible form Point II – true- definition of Demutualisation from Securities Contract Regulation Act Point III- False – Section 10 of Depository Act - Rights of depositories and beneficial owner— (1) Notwithstanding anything contained in any other law for the time being in force, a depository shall be deemed to be the registered owner for the purposes of effecting transfer of ownership of security on behalf of a beneficial owner
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