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

Ms. Anita Rao wants to know the role of the Registrar and Transfer Agent (RTA) in the depository system. Which statement is correct?

The RTA works for the issuer, maintains the register of security holders and connects with the depository to process demat and remat requests. It does not open investor accounts, settle trades or regulate DPs; those are done by DPs, clearing corporations and SEBI respectively.

  1. AThe RTA maintains the issuer's records of securities and connects with the depository to update the issuer's register for demat and remat requestsCorrect
  2. BThe RTA settles trades between brokers on behalf of the clearing corporation
  3. CThe RTA opens beneficial owner accounts for investors on behalf of the depository
  4. DThe RTA regulates the Depository Participants and inspects their operations

Explanation

The RTA acts for the issuer, keeps records of securities holders and links electronically with depositories. It processes demat and remat requests received from DPs through the depository. Account opening is done by DPs, trade settlement by clearing corporations, and regulation by SEBI and depositories.

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