NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners
A company wants its securities to be held and transferred electronically through a depository. Through which entity does the issuer typically interact with the depository for maintaining the electronic records and handling corporate benefits?
The issuer usually interacts with the depository through its Registrar and Share Transfer Agent. The RTA links electronically with the depository to process dematerialisation requests and obtain beneficiary data for dividends and other corporate benefits. Brokers and clearing members handle trading and settlement instead.
- ARegistrar and Share Transfer AgentCorrect
- BClearing member
- CStock broker only
- DCustodian of the investor
Explanation
Issuers appoint a Registrar and Transfer Agent, which connects electronically with the depositories to process demat or remat requests and to receive beneficial owner data for corporate actions. Clearing members and brokers deal with trade settlement, not issuer-depository records.
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