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

A DP is a member of both NSDL and CDSL. Which statement about this arrangement is correct?

A Depository Participant can register with more than one depository, such as NSDL and CDSL. The client's account is opened with the depository it chooses through that DP; accounts are not created in both automatically, and no SEBI registration needs to be surrendered.

  1. AA DP may register with more than one depository, and the investor's account is then opened under the specific depository chosenCorrect
  2. BA DP can never register with more than one depository
  3. CThe investor automatically gets accounts in both depositories
  4. DThe DP must give up its SEBI registration to join the second depository

Explanation

A DP can be registered with more than one depository. Each demat account is opened with one depository through the DP, so the investor has an account under the depository chosen, not automatically both.

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