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

In a depository, which of the following is the role of the Registrar and Transfer Agent (RTA) acting for an issuer that has admitted its securities to the depository?

The RTA maintains the issuer's records and, for dematerialised securities, gets beneficial owner details from the depository so that dividends and other benefits can be processed. It does not open demat accounts, guarantee settlement or hold investors' cash; those belong to DPs and clearing corporations.

  1. AOpening beneficial owner accounts for investors
  2. BGuaranteeing settlement of exchange trades
  3. CMaintaining the issuer's records and, for dematerialised shares, receiving the beneficial owner details from the depositoryCorrect
  4. DActing as the custodian of investors' cash balances

Explanation

The RTA maintains the issuer's register of members and handles share transfers and demat processing, and it receives beneficial owner data from the depository for corporate actions. Opening accounts is a DP function, and settlement guarantee belongs to the clearing corporation. RTAs do not hold investors' cash.

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