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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to the Indian Capital Market

Ms. Kavita Rao wants to buy shares of a listed company through a stock exchange and hold them in electronic form. Which entity maintains the electronic record of her holdings and facilitates their transfer without physical certificates?

A depository, accessed through a depository participant, holds securities in electronic book-entry form and facilitates transfers without physical certificates. Brokers only execute trades, the registrar of companies handles company filings, and auditors do not maintain investor securities records.

  1. AA depository, through its depository participantCorrect
  2. BThe stock exchange's trading member alone
  3. CThe registrar of companies
  4. DThe issuing company's statutory auditor

Explanation

In India, securities held in dematerialised form are recorded as book entries by a depository (NSDL or CDSL), and investors access this through a depository participant. Trading members execute trades, the Registrar of Companies maintains company filings, and auditors do not hold securities records.

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