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CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries

Anvaya Capital, an IFSC intermediary, opens demat accounts for investors, credits securities bought by them and processes their transfer instructions, acting as an agent of a depository. Which description fits Anvaya's role?

Anvaya is acting as a depository participant. A depository participant is the depository's agent that opens demat accounts, holds securities in electronic form for investors and processes their transfer instructions. Merchant banking, proprietary trading and investment advice are separate functions.

  1. ADepository participantCorrect
  2. BStock exchange member only trading proprietary
  3. CMerchant banker underwriting an IPO
  4. DInvestment adviser giving research reports

Explanation

A depository participant is the agent of a depository through which investors hold and transfer securities in dematerialised form. Opening demat accounts and processing transfers are its core services. A merchant banker underwriting an IPO or an adviser giving research does not maintain investor demat accounts.

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