NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners
Which entity acts as the intermediary through which an investor accesses the services of a depository such as NSDL or CDSL?
A Depository Participant is the intermediary through which investors avail depository services. It acts as an agent of the depository, opening demat accounts and handling dematerialisation and transfers, whereas RTAs serve issuers and clearing corporations settle trades.
- ARegistrar and Transfer Agent
- BDepository ParticipantCorrect
- CClearing Corporation
- DStock exchange
Explanation
A Depository Participant is the agent of the depository and the link between the depository and the investor. It opens demat accounts and processes transfers. An RTA works for the issuer, and a clearing corporation handles settlement of trades.
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