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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Operational Aspects of Investment Management

In the context of a client's investments held in dematerialised form, which entity maintains the electronic records of securities ownership and facilitates their transfer without physical certificates?

A depository maintains electronic records of securities ownership and enables transfer by book entry through depository participants. Exchanges only provide trading platforms and rating agencies only assess credit quality, so neither holds the investor's dematerialised holdings.

  1. AA depositoryCorrect
  2. BA stock exchange
  3. CA credit rating agency
  4. DA registrar to an issue only

Explanation

Depositories such as NSDL and CDSL hold securities in electronic form and record ownership and transfers through depository participants. Stock exchanges provide trading platforms, not custody records. Rating agencies assess credit risk.

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