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

A BO complains that she did not receive her periodic statement of holdings. Under the regular obligations of a DP towards BOs with transactions or holdings, what is the correct position?

The DP must send the statements of transactions and holdings at the prescribed periodicity, in the physical or electronic mode the BO opted for. It is a standing obligation of the DP, not something dependent on repeated requests or on the issuer company.

  1. AThe DP must send the statement of transactions and holdings at the prescribed periodicity, in physical or electronic form as the BO has optedCorrect
  2. BThe DP need send a statement only if the BO asks for it each time
  3. CThe statement is sent only by the issuer company
  4. DThe DP sends a statement only once a year, regardless of activity

Explanation

DPs are required to provide statements of transactions and holdings to BOs at the periodicity prescribed by the regulator, in the mode the BO has opted for (physical or electronic). It is not dependent on the BO asking each time, and it is not an issuer's duty.

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