CS Professional · Strategic Management and Corporate Finance · Role of Intermediaries in Fund Raising
In the Indian securities market, which entity holds investors' securities in dematerialised form and enables their transfer by book entry?
A depository holds investors' securities in dematerialised form and transfers ownership by book entry. In India, NSDL and CDSL perform this role. Registrars and merchant bankers handle issue processing and management, not custody of securities.
- AA depositoryCorrect
- BA stock exchange clearing corporation acting as underwriter
- CA registrar to an issue
- DA merchant banker
Explanation
A depository (NSDL or CDSL) holds securities in electronic form and effects transfers by book entry. A registrar to an issue handles allotment and refund processing, not custody. A merchant banker manages issues, and a clearing corporation guarantees settlement.
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