CMA Intermediate · Financial Management and Business Data Analytics · Capital Market
In India's depository system, which entity maintains the investor's securities account in dematerialised form and acts as the link between the investor and the depository?
The Depository Participant is the correct answer. It acts as an agent of the depository, such as NSDL or CDSL, and opens and maintains the investor's demat account. A Registrar to an Issue only processes applications and allotments for an issue.
- ADepository ParticipantCorrect
- BRegistrar to an Issue
- CMerchant Banker
- DDebenture Trustee
Explanation
A Depository Participant (DP) is the agent of the depository (NSDL or CDSL) through which the investor opens a demat account and holds securities electronically. A Registrar to an Issue handles share applications and allotment, not demat account maintenance.
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