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 in electronic form and acts as the link between the depository and the investor?
The Depository Participant is the agent of the depository that deals directly with investors. It opens demat accounts, processes dematerialisation and transfer requests, and maintains client records, so it links the investor with the depository, unlike the RTA, clearing corporation or stock exchange.
- ARegistrar and Transfer Agent
- BDepository ParticipantCorrect
- CClearing Corporation
- DStock Exchange
Explanation
A Depository Participant (DP) is the agent of the depository and is the intermediary through which investors access depository services such as account opening, demat and transfers. The RTA maintains issuer records, the clearing corporation handles settlement, and the exchange provides trading.
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