Multiple choice general knowledge

SEBI has issued a directive that from January 4, 1999:

  1. all categories of investors have to compulsorily settle their trades in demat form with respect to all the companies that have joined NSDL.

  2. all categories of investors have to compulsorily hold shares in demat form with respect to select list of scrips.

  3. all categories of investors have to compulsorily settle their trades in demat form with respect to select list of scrips.

  4. only institutional players have to compulsorily settle their trades in demat form with respect to all the companies that have joined NSDL.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SEBI's January 4, 1999 directive mandated compulsory demat settlement for all investors in a select list of securities. This was a phased introduction of demat trading. It applied to settlement, not mandatory holding. The directive covered all investor categories, not just institutions, and was limited to specific scrips, not all NSDL companies.

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