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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations

Mr. Reddy wants to receive periodic statements of his demat account. What is the standard requirement regarding the transaction statement from the DP?

The DP must give the BO a statement of transactions and holdings at the periodicity prescribed by the regulations, or when the BO requests it. It is not limited to account closure, and it is the DP's duty rather than the issuer company's.

  1. AThe DP must provide a statement of transactions at the periodicity required by the regulations or as requested by the BOCorrect
  2. BThe DP need provide a statement only when the account is closed
  3. CThe DP may charge any amount and refuse to provide statements if unpaid
  4. DThe statement is provided only by the issuer company

Explanation

DPs must provide BOs transaction statements and holding statements at prescribed intervals, depending on activity, and also on request. Providing only at closure is not compliant, and the issuer company does not issue demat statements. DPs cannot refuse mandatory statements.

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