Skip to content

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

In the Indian depository system, which entity maintains the electronic records of investors' holdings and interacts with investors through its agents?

The depository maintains electronic records of holdings, and investors reach it through Depository Participants, who act as its agents. Investors cannot open accounts directly with the depository, so the DP is the service interface for demat, transfers and other account operations.

  1. AThe depository, which deals with investors through Depository ParticipantsCorrect
  2. BThe issuer company, which deals through its registrar only
  3. CThe stock exchange, which deals through its clearing members
  4. DThe clearing corporation, which deals through custodians only

Explanation

A depository holds securities in electronic form, but investors do not deal with it directly. They access its services through Depository Participants (DPs), which act as its agents. The other options assign this role to entities that do not maintain demat holdings.

Did you get it right without looking?

One question tells you little. A timed set on Depository and its Business Partners shows your real accuracy, how long you take and where you lose marks.

Practise Depository and its Business PartnersFree diagnostic mock

More Depository and its Business Partners questions