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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

A beneficial owner (BO) wants to receive a statement of all transactions in her demat account for a period, in addition to the periodic statements already sent. Under depository norms, what should the Depository Participant (DP) do?

The DP should provide the transaction statement on request. DPs are obliged to furnish account statements to beneficial owners at prescribed intervals and whenever the BO asks, and this is not limited by account closure or number of securities held.

  1. ARefuse, since only the depository can issue statements
  2. BProvide the transaction statement on request, as the DP must furnish account statements to the BOCorrect
  3. CProvide it only after the BO closes the account
  4. DProvide it only if the BO holds more than 100 securities

Explanation

A DP is required to give the BO transaction statements at the prescribed periodicity and also on request. The depository does not issue statements in place of the DP, and the request is not conditional on closure or holding size.

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