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 with the depository and acts as the agent of the depository to offer its services to investors?
A Depository Participant is the answer. It acts as the depository's agent and the intermediary between the depository and investors, who cannot open accounts directly with the depository. RTAs, clearing corporations and exchanges perform different functions in the securities market.
- ADepository ParticipantCorrect
- BRegistrar and Transfer Agent
- CClearing Corporation
- DStock Exchange
Explanation
A Depository Participant (DP) is the agent of the depository and is the link between the depository and the investor. Investors cannot deal directly with the depository. An RTA maintains issuer records, and a clearing corporation handles settlement obligations.
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