NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)
Ms. Kavita Menon, a BO, wants to receive statements of her demat account and a transaction statement. Which statement must a DP provide to a BO at least once a month when there have been transactions in the account?
The DP must give the BO a transaction statement covering the transactions carried out in the account, generally at monthly intervals where transactions have occurred. Quarterly statements are meant for accounts without transactions, and neither company results nor an annual certificate satisfies this requirement.
- AOnly a quarterly statement irrespective of transactions
- BTransaction statement showing the transactions in the periodCorrect
- CA statement of the issuer's financial results
- DOnly an annual holding certificate
Explanation
Where an account has transactions, the DP must provide the BO a transaction statement at the prescribed periodicity (generally monthly). A quarterly-only statement applies to accounts with no transactions, and financial results are not DP statements.
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