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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository

Ms. Kavita Rao holds shares of a listed company in dematerialised form. In whose name do these shares appear in the records of the issuer company's register of members?

The depository appears as the registered owner in the issuer's register, while Kavita Rao is the beneficial owner. The Depositories Act separates registered ownership from beneficial ownership, so the investor keeps all rights and benefits of the securities even though the depository is the name on the register.

  1. AKavita Rao, as the registered owner
  2. BThe depository, as the registered owner, with Kavita Rao as the beneficial ownerCorrect
  3. CThe Depository Participant, as the registered owner
  4. DThe clearing corporation, as the registered owner

Explanation

Under the Depositories Act, when securities are held in a depository, the depository is the registered owner in the issuer's records, while the investor is the beneficial owner with all rights and benefits. The investor is not the registered owner, and neither the DP nor the clearing corporation holds that status.

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