NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
A DP is servicing an FPI client's demat account. Under SEBI rules, which entity is typically required to maintain the FPI's securities account arrangements and report its transactions?
An FPI must appoint a SEBI-registered custodian, which maintains its securities and reports its transactions. Registrars, clearing settlement banks and stock brokers perform other functions and do not fulfil the custodial requirement that applies to FPIs.
- AA custodian of securities registered with SEBICorrect
- BThe issuer company's registrar
- CThe clearing corporation's settlement bank
- DThe stock broker alone
Explanation
FPIs must appoint a SEBI-registered custodian, which holds securities in the FPI's demat account and reports transactions. A registrar or settlement bank has different roles, and a broker alone does not perform the custodial function required.
Did you get it right without looking?
One question tells you little. A timed set on Foreign Portfolio Investors (FPI) shows your real accuracy, how long you take and where you lose marks.
More Foreign Portfolio Investors (FPI) questions
- A DP receives a request from an FPI client for a demat account. Which feature distinguishes the FPI's demat account opening from that of a r…
- For an FPI that needs to sell its holdings, which entity acts as the one that settles the FPI's trades and holds its securities and funds on…
- An FPI wishes to transfer securities held in its demat account to another FPI's demat account off-market. Which statement is most appropriat…
- Under the FPI framework, FPIs are classified into categories based on risk. Which of the following best describes the current classification…
- A Mauritius-based fund wants to invest in Indian listed shares as a Foreign Portfolio Investor. Through which entity does it obtain its FPI …
- A DP is opening a demat account for an FPI. Which statement about the FPI's holding and account is correct?