Depositories and Depository Participants (NSDL/CDSL) MCQs

1. Which of the following is the first depository in India?
(A) NSDL
(B) CDSL
(C) SEBI
(D) RBI

2. In which year was NSDL established?
(A) 1992
(B) 1996
(C) 2000
(D) 2005

3. CDSL stands for:
(A) Central Depository Services Limited
(B) Central Digital Securities Limited
(C) Certified Depository Securities Limited
(D) Central Development Securities Limited

4. Which regulator oversees NSDL and CDSL?
(A) RBI
(B) SEBI
(C) Ministry of Finance
(D) IRDAI

5. Depositories help investors by:
(A) Holding securities in electronic form
(B) Issuing physical share certificates
(C) Controlling company profits
(D) Distributing dividends directly

6. Which of the following is India’s largest depository?
(A) CDSL
(B) NSDL
(C) BSE
(D) NSE

7. Which depository was promoted by BSE?
(A) NSDL
(B) CDSL
(C) SEBI
(D) RBI

8. Depository Participants (DPs) act as:
(A) Intermediaries between investors and depositories
(B) Brokers
(C) Company registrars
(D) Mutual fund managers

9. A Demat account is opened with:
(A) Stock exchanges
(B) Depository participants
(C) RBI
(D) Ministry of Finance

10. Which of the following cannot be held in a Demat account?
(A) Shares
(B) Bonds
(C) Real estate property
(D) Debentures

11. NSDL was promoted by:
(A) NSE
(B) BSE
(C) SEBI
(D) RBI

12. The main function of a depository is similar to:
(A) A commercial bank holding money
(B) A broker executing orders
(C) A registrar issuing IPOs
(D) A regulator controlling prices

13. The unique identification number given to every Demat account is called:
(A) UPI
(B) DP ID + Client ID
(C) ISIN only
(D) PAN

14. ISIN stands for:
(A) International Securities Identification Number
(B) Indian Securities Investment Number
(C) Internal Securities Identification Number
(D) International Stock Identification Number

15. The depositories in India function under:
(A) Companies Act
(B) SEBI (Depositories and Participants) Regulations
(C) Banking Regulation Act
(D) FEMA Act

16. Which of the following are examples of DPs?
(A) Banks
(B) Stock brokers
(C) Financial institutions
(D) All of the above

17. Which of the following services is NOT offered by depositories?
(A) Dematerialization
(B) Rematerialization
(C) Direct IPO funding
(D) Settlement of trades

18. In India, physical share certificates were made mandatory to convert into Demat form after:
(A) 1996
(B) 1999
(C) 2001
(D) 2005

19. Rematerialization means:
(A) Conversion of electronic securities into physical form
(B) Conversion of physical securities into electronic form
(C) Selling shares in the secondary market
(D) Buying shares from IPO

20. Which of the following is a benefit of Demat accounts?
(A) Elimination of physical certificates
(B) Faster settlement
(C) Reduced risk of theft/loss
(D) All of the above

21. The head office of NSDL is in:
(A) New Delhi
(B) Mumbai
(C) Kolkata
(D) Hyderabad

22. The head office of CDSL is in:
(A) Delhi
(B) Mumbai
(C) Bengaluru
(D) Chennai

23. Which is the first listed depository in India?
(A) NSDL
(B) CDSL
(C) BSE
(D) NSE

24. Which of the following is a unique feature of depositories?
(A) Paperless trading
(B) Risk of fake certificates
(C) Manual settlement
(D) Mandatory physical transfers

25. In India, the settlement of trades in Demat mode is on:
(A) T+0
(B) T+1
(C) T+2
(D) T+3

26. Which number is essential for opening a Demat account?
(A) Aadhaar
(B) PAN
(C) ISIN
(D) UPI

27. Which of the following can be held in Demat accounts?
(A) Mutual fund units
(B) Government securities
(C) ETFs
(D) All of the above

28. Which document is issued to confirm holding of securities in Demat form?
(A) Holding statement
(B) Share certificate
(C) Dividend warrant
(D) Bond deed

29. The term “dematerialization” means:
(A) Conversion of securities from physical to electronic form
(B) Conversion of securities from electronic to physical form
(C) Buying new shares
(D) Selling bonds

30. The settlement guarantee in depository systems is provided by:
(A) SEBI
(B) Clearing corporation
(C) RBI
(D) Depository participants

31. Which of the following is a primary role of DPs?
(A) Opening Demat accounts
(B) Dematerialization/rematerialization
(C) Settlement of trades
(D) All of the above

32. How many depositories are currently operating in India?
(A) One
(B) Two
(C) Three
(D) Four

33. Which of the following is linked with investor’s bank account for seamless transactions?
(A) Demat account
(B) Trading account
(C) Depository only
(D) None of the above

34. The transfer of securities from one Demat account to another is called:
(A) Transmission
(B) Off-market transfer
(C) Pledge
(D) Redemption

35. Which of the following charges are applicable to Demat accounts?
(A) Account opening fee
(B) Annual maintenance charges
(C) Transaction charges
(D) All of the above

36. NSDL is promoted by:
(A) NSE, IDBI, and UTI
(B) BSE and SBI
(C) RBI and SEBI
(D) Only SEBI

37. CDSL was promoted by:
(A) BSE, PNB, and HDFC Bank
(B) NSE and IDBI
(C) RBI and SEBI
(D) SBI and UTI

38. Which of the following can act as a DP?
(A) Banks
(B) Brokers
(C) NBFCs
(D) All of the above

39. Pledging of shares in Demat form is done through:
(A) Depositories
(B) Stock exchanges
(C) SEBI
(D) RBI

40. The facility to freeze a Demat account is provided to:
(A) Prevent unauthorized debit
(B) Increase trading
(C) Issue new shares
(D) Avoid SEBI penalty

41. Which of the following corporate actions can be directly credited into Demat accounts?
(A) Bonus shares
(B) Rights issues
(C) Stock splits
(D) All of the above

42. Which of the following is an advantage of Demat over physical shares?
(A) Elimination of stamp duty on transfer
(B) Quick settlement
(C) No risk of loss/damage
(D) All of the above

43. Which of the following cannot be appointed as a DP?
(A) Bank
(B) Stock broker
(C) SEBI
(D) NBFC

44. Transmission of securities in Demat account refers to:
(A) Transfer of securities due to inheritance/death
(B) Transfer of securities between brokers
(C) Buying new securities
(D) Selling shares

45. The settlement cycle in Indian stock markets is currently:
(A) T+1
(B) T+2
(C) T+3
(D) T+4

46. The process of converting mutual fund units into Demat form is called:
(A) Dematerialization
(B) Redemption
(C) Switching
(D) Rematerialization

47. Which of the following is NOT required for opening a Demat account?
(A) PAN card
(B) Aadhaar card
(C) Driving license
(D) DP form

48. The facility of e-voting by shareholders is enabled through:
(A) Depositories
(B) Brokers
(C) SEBI
(D) Companies Act

49. In Demat form, securities are held in the name of:
(A) Investor
(B) Depository
(C) DP
(D) Broker

50. Which of the following best defines a depository system?
(A) An electronic system that holds and transfers securities
(B) A trading platform for shares
(C) A mutual fund scheme
(D) A stock exchange