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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Mr. Iyer wants to receive in his demat account statements of holdings and transactions. Under the SEBI framework, which statement about the periodic statements a DP must send to a BO is correct?

Statements can be sent electronically if the beneficial owner has opted for e-statements and registered an email address; otherwise the DP must send them in physical form. Delivery is not conditional on a written request for each transaction, so the electronic or physical choice follows the BO's option.

  1. AA statement of holdings is never required if there are no transactions in any period
  2. BA transaction statement is required only when the BO makes a written request
  3. CThe DP may send statements only to the first holder in a joint account and never to others
  4. DStatements may be sent electronically if the BO has opted for e-statements, otherwise physicallyCorrect

Explanation

Depositories' rules allow DPs to deliver statements by electronic mode when the BO has registered an email and opted for it, and in physical form otherwise. The other options misstate the obligations: statements are not dependent on written requests for each transaction, and holdings reporting does not simply lapse.

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