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NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners

Which entity maintains the records of beneficial owners' holdings in electronic form and acts as the custodian of securities held in dematerialised form in India, with the issuer's registrar linking to it for electronic credits?

A depository is the entity that holds securities in electronic form and maintains records of beneficial owners' holdings. Clearing corporations only settle trades, exchanges provide trading platforms, and rating agencies assess credit risk, so the depository is the correct answer.

  1. ADepositoryCorrect
  2. BClearing corporation
  3. CStock exchange
  4. DCredit rating agency

Explanation

A depository holds securities in electronic form and maintains ownership records through its participants. Clearing corporations handle settlement of trades, exchanges provide trading platforms, and rating agencies only assess credit risk. Hence only the depository fits.

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