NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners
Which entity acts as the link through which an investor in India obtains depository services such as opening a demat account?
A Depository Participant is the correct answer. It acts as an agent of the depository and is the intermediary through which investors open demat accounts and avail depository services, since investors cannot deal directly with the depository itself.
- ADepository ParticipantCorrect
- BClearing Corporation
- CStock Exchange
- DRegistrar and Transfer Agent
Explanation
A Depository Participant (DP) is the agent of the depository and is the interface between the depository and the investor. Investors cannot deal directly with the depository for account opening. Clearing corporations and exchanges handle trade settlement, and an RTA maintains issuer records.
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