Skip to content

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

Ms. Rao wants to hold securities in demat form. Under the depository structure in India, with whom does she open her demat account?

She opens the demat account with a SEBI-registered Depository Participant, which acts as the depository's agent and the link between the depository and investors. Registrars, clearing corporations and the RBI do not open investor demat accounts.

  1. AA Depository Participant registered with SEBI, who is an agent of the depositoryCorrect
  2. BDirectly with the issuer company's registrar only
  3. CThe stock exchange clearing corporation
  4. DThe Reserve Bank of India

Explanation

Investors cannot deal directly with the depository for account opening; they open a beneficial owner account through a Depository Participant, which acts as the depository's agent and interface with investors. Registrars, clearing corporations and the RBI do not open demat accounts.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Depository shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to DepositoryFree diagnostic mock

More Introduction to Depository questions