NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)
A beneficial owner (BO) wants to receive the transaction-cum-holding statement from the Depository Participant (DP) in a form other than the default. Which of the following is the correct position regarding statements a DP must give to a BO?
A DP must provide account statements to the BO at the prescribed periodicity, and the BO can choose physical or electronic delivery as agreed in the account opening arrangement. It is not necessary for the BO to request each statement separately, so the option describing the agreed periodic issue is correct.
- AA DP may charge for the statement only if the BO has not made any transaction during the period
- BA DP must give a statement of account at the agreed periodicity and a BO may ask for it in physical or electronic form as per the agreementCorrect
- CA DP need not issue any statement if the BO has no holdings in the account
- DA DP is required to send statements only when the BO makes a written request every time
Explanation
A DP has to furnish statements of the BO account at the periodicity prescribed and the BO can opt for physical or electronic delivery as agreed. Statements are not conditional on a fresh request every time, and the obligation is not removed merely because of nil holdings if there were transactions in the period. The charge-related option wrongly links charging to absence of transactions.
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