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NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners

A company wants its shares to be held and traded in electronic form. Which business partner of the depository interacts with the depository to enable electronic credit of shares on behalf of the issuer, after the issuer signs an agreement with the depository?

The Registrar and Transfer Agent acts for the issuer and connects with the depository so that shares can be credited electronically after an agreement is signed. Brokers execute trades, custodians safekeep institutional assets, and investment advisers give advice, so none of them performs this issuer-side role.

  1. ARegistrar and Transfer AgentCorrect
  2. BStock broker
  3. CCustodian bank
  4. DInvestment adviser

Explanation

The issuer (or its RTA acting as share transfer agent) links with the depository, so that allotments and corporate benefits can be credited electronically. Brokers execute trades, custodians hold assets for institutions, and advisers give advice. Only the RTA performs the issuer-side electronic linkage.

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