NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners
Ravi wants to hold shares in demat form. Through whom can he access the services of a depository such as NSDL or CDSL?
An investor accesses depository services through a Depository Participant, who is the agent of the depository. The investor does not open an account directly with NSDL or CDSL, and issuers or registrars do not open demat accounts for investors.
- ADirectly by opening an account with the depository
- BThrough a Depository Participant, which is the agent of the depositoryCorrect
- CThrough the issuer company's board of directors
- DThrough the Registrar and Transfer Agent only
Explanation
Investors cannot deal directly with the depository for opening an account. They access depository services via a Depository Participant, which acts as the agent of the depository. Registrars and issuers do not open investor demat accounts.
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