Skip to content

CS Professional · Strategic Management and Corporate Finance · Role of Intermediaries in Fund Raising

Meera wants to hold shares of Tata Steel in demat form. Through whom does she access the services of a depository?

Meera accesses a depository through a depository participant, with whom she opens a demat account. Depositories such as NSDL and CDSL serve investors only via these SEBI-registered participants, not directly, and not through the registrar or the exchange listing department.

  1. ADirectly by signing with NSDL as a retail client
  2. BA depository participant with whom she opens a demat accountCorrect
  3. CThe company's registrar and transfer agent only
  4. DThe stock exchange's listing department

Explanation

Investors deal with depositories only through depository participants (DPs), such as banks and brokers registered with SEBI. The depository has no direct retail relationship with investors. The RTA maintains issuer records and does not open demat accounts.

Did you get it right without looking?

One question tells you little. A timed set on Role of Intermediaries in Fund Raising shows your real accuracy, how long you take and where you lose marks.

Practise Role of Intermediaries in Fund RaisingFree diagnostic mock

More Role of Intermediaries in Fund Raising questions