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NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners

Mr. Vikram Shah holds shares in a demat account with a DP of NSDL. In the depository structure, who is the registered owner of those shares in the issuer's records?

The depository is the registered owner in the issuer's records, while Vikram Shah is the beneficial owner entitled to dividends, bonus and voting rights. The DP is merely the depository's agent and the clearing corporation has no ownership role in dematerialised holdings.

  1. AVikram Shah, as both registered and beneficial owner
  2. BThe DP, as registered owner, with Vikram as beneficial owner
  3. CThe depository, as registered owner, with Vikram as beneficial ownerCorrect
  4. DThe clearing corporation, as registered owner

Explanation

Under the Depositories Act, the depository's name appears in the issuer's register as registered owner, while the investor is the beneficial owner with all rights and benefits. The DP is only an agent, and the clearing corporation holds no ownership. Hence the depository is the registered owner.

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