Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | Rematerialisation | (I) | Postponement of the delivery or payment of a transaction from one settlement period to another |
| (B) | Badla | (II) | Deals struck among brokers on the floor of the stock exchange |
| (C) | Rolling settlement | (III) | Electronic holdings changed back into physical certificates |
| (D) | Open outcry system | (IV) | Each trade cleared after some days from the date on which it takes place |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
| List-I | List-II | Reason |
|---|---|---|
| (A) Rematerialisation | (III) Electronic holdings changed back into physical certificates | Electronic holdings can be reconverted into physical certificates. This reverse of dematerialisation is rematerialisation. |
| (B) Badla | (I) Postponement of the delivery or payment of a transaction from one settlement period to another | Badla is a carry forward system of settlement, mainly at the BSE. It moves delivery or payment to a later settlement period. |
| (C) Rolling settlement | (IV) Each trade cleared after some days from the date on which it takes place | Rolling settlement, brought in 2000, settles each trade after some days, now on a T+2 basis. |
| (D) Open outcry system | (II) Deals struck among brokers on the floor of the stock exchange | Securities were once traded on the floor of the stock exchange. Brokers shouted prices and struck deals among themselves. |
NCERT (Pre-rationalised Edition): “TRADING AND SETTLEMENT PROCEDURE … There was a time when in the open outcry system, securities were bought and sold on the floor of the stock exchange. Under this auction system, deals were struck among brokers, prices were shouted out and the shares sold to the highest bidder. …” “Steps in the Trading and Settlement Procedure … A new system, i.e, rolling settlement, was introduced in 2000, so that whenever a trade took place it would be settled after some days. …” “Dematerialisation and Depositories … Holding shares in demat form is very convenient as it is just like a bank account. Physical shares can be converted into electronic form or electronic holdings can be reconverted into physical certificates (rematerialisation). …” “…BADLA – This refers to a carry forward system of settlement, particularly at the BSE. It is a facility that allows the postponement of the delivery or payment of a transaction from one settlement period to another. …” |