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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations

A BO wants to know how often a DP must send transaction statements to a client who has had transactions in the account during the period. Which statement best reflects the requirement?

A DP must provide transaction statements to the BO at the periodic intervals prescribed by the regulations, depending on account activity, and also whenever the BO asks for one. The duty does not disappear with internet access and is not limited to closure or pledges.

  1. AA statement of transactions must be provided at the periodic intervals prescribed, and at least on requestCorrect
  2. BStatements are never required if the BO has internet access
  3. CStatements are required only at account closure
  4. DStatements are required only for pledge transactions

Explanation

DPs must give BOs transaction statements at prescribed intervals (depending on activity) and also on request. Internet access does not remove the obligation, and it is not limited to closure or pledges.

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