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

In the Indian depository system, which entity maintains the records of beneficial owners' holdings and the registers of securities held in dematerialised form, acting as the link between the issuer and the investor through its participants?

The depository is the entity that holds securities in electronic form and records beneficial owners' holdings, serving investors through Depository Participants. Clearing corporations only settle trades and exchanges only provide trading platforms, so neither maintains the demat holding records.

  1. AThe depositoryCorrect
  2. BThe clearing corporation
  3. CThe stock exchange
  4. DThe merchant banker

Explanation

A depository holds securities in electronic form and records ownership as book entries. Investors access it through Depository Participants. A clearing corporation handles settlement obligations, and an exchange provides the trading platform, so they do not maintain beneficial holdings.

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