NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository
Mr. Arvind Mehta wants to know which entity maintains the investor's account and acts as the agent of the depository, serving as the link between the depository and the investor. Which entity is this?
A depository participant is the entity that opens and maintains the investor's demat account and acts as the depository's agent. It is the link between the investor and the depository, accepting instructions for transfers, pledges and dematerialisation, unlike an RTA which serves the issuer.
- ARegistrar and transfer agent
- BDepository participantCorrect
- CClearing member of the stock exchange
- DCustodian of the issuer
Explanation
A depository participant (DP) is the agent of the depository and is the intermediary through which the investor opens a demat account and gives instructions. An RTA serves issuers, and clearing members handle settlement obligations.
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