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

A BO complains that he has not received his quarterly statement of transactions even though there were transactions in his demat account during the quarter. What is the correct position regarding the DP's obligation?

The DP must send the BO a statement of transactions at least quarterly when transactions have occurred, and must provide statements at shorter intervals if the BO asks. It cannot wait for a written request or skip statements merely because an email is registered.

  1. AThe DP need send a statement only if the BO specifically requests it in writing
  2. BThe DP must send the statement of transactions at least once a quarter when there are transactions, and the BO may get more frequent statements on requestCorrect
  3. CThe DP must send statements only annually, regardless of transactions
  4. DThe DP is exempt from sending statements if the BO has an email address

Explanation

Under the depository framework, a DP must give BOs transaction statements at the prescribed periodicity (at least quarterly where transactions took place), and more frequently if the BO requests. Option A, C and D are not provisions of the rules.

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