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Introduction to Financial Markets (405) — CBSE Class 10 board question

Q1. [2] § How is a depository similar to a bank? § What are the benefits of participation in a depository? § Who is a Depository Participant (DP)?
List two services that depository participants offer to investors.
Previously asked in CBSE board exam
2026 92 Q13
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer

Two services offered by Depository Participants (DPs) to investors are:

  1. Transmission of securities — The DP directly transmits securities on behalf of the investor, eliminating the need for correspondence with companies.
  2. Change of address registration — A change of address recorded with the DP gets registered electronically with all companies in which the investor holds securities.

Source: Chapter 6, Depository Participants

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Explanation

The question asks for two services, so two distinct points are sufficient. Examiners expect specific DP services, not general depository benefits. Avoid vague answers like "helps in buying shares." Always name the service clearly and add a brief explanation to secure full marks (1 mark per service).

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Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.