Q1. [2] § What are the benefits of participation in a depository? § Can one dematerialise his debt instruments, mutual fund units, government securities in his demat account?
Describe any two benefits of dematerialized (Demat) account.
Previously asked in CBSE board exam
2023 92 Q13
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
Two benefits of a Demat account are:
- Elimination of risks associated with physical certificates such as bad delivery, fake securities, and loss/theft of certificates.
- No stamp duty on transfer of securities, which reduces the overall transaction cost for investors.
Source: Chapter 6, Benefits of participation in a depository
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Explanation
The question asks for any two benefits, so pick two distinct points from the list provided. Examiners award 1 mark per valid benefit. State each benefit clearly with a brief explanation — don't just list one-word answers. Avoid repeating the same idea in different words.
If a question refers to an image, map, graph or diagram that is not shown here, find the actual CBSE question paper on the CBSE website:
cbse.gov.in.