NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository
Which entity acts as the link between an investor and the depository, offering depository services to clients?
A depository participant is the agent of the depository and the point of contact for investors. Through a DP, investors open demat accounts, dematerialise securities and give transfer instructions. Registrars serve issuers and clearing members handle trade settlement, so they do not provide this link.
- ARegistrar and transfer agent
- BDepository participantCorrect
- CClearing member
- DStock exchange
Explanation
A depository participant is an agent of the depository and is the intermediary through which investors access depository services such as account opening, dematerialisation and transfers. A registrar serves the issuer, and a clearing member handles settlement of trades.
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