NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market
Which market participant is mainly responsible for maintaining the records of unit holders and processing purchase and redemption requests on behalf of a mutual fund?
The registrar and transfer agent is correct. It keeps unit holder records, processes purchases and redemptions and issues account statements for the mutual fund. A custodian safeguards securities, a depository participant handles demat accounts, and an exchange offers trading.
- ACustodian
- BRegistrar and transfer agentCorrect
- CDepository participant
- DStock exchange
Explanation
RTAs maintain unit holder records, process subscriptions and redemptions and send statements. The custodian safeguards securities, a depository participant services demat accounts, and an exchange provides a trading platform.
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