NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners
In the Indian depository system, which entity acts as the link between the investor and the depository by opening and maintaining demat accounts for investors?
The Depository Participant is the intermediary between the investor and the depository. It opens and maintains demat accounts and processes instructions such as transfers and dematerialisation. Registrars, clearing corporations and exchanges perform different functions and do not deal with investors for account opening.
- ARegistrar and Transfer Agent
- BDepository ParticipantCorrect
- CClearing Corporation
- DStock Exchange
Explanation
A Depository Participant (DP) is the agent of the depository and the point of contact for investors. It opens demat accounts and processes their requests. RTAs maintain issuer records, clearing corporations handle settlement, and exchanges provide trading.
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