NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market
Which of the following is a function of a registrar and transfer agent in the securities market?
A registrar and transfer agent maintains the records of securities holders for the issuing company and processes transfers, allotments and related payments. It does not guarantee trade settlement, act as a central counterparty or set price circuit limits, which are roles of the clearing corporation and exchange.
- AMaintaining the records of securities holders on behalf of the issuer and processing transfersCorrect
- BGuaranteeing settlement of trades on exchanges
- CActing as the counterparty for all derivative trades
- DSetting circuit limits on stocks
Explanation
An RTA maintains the register of holders for the issuer, handles allotment, transfers and dividend/refund processing. Settlement guarantee is a clearing corporation task, and circuit limits are applied by the exchange under SEBI norms.
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