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

Which of the following is a function of the depository's business partner, the Registrar and Transfer Agent, in a demat request that a DP submits through the depository system?

The RTA confirms the demat request after verifying the certificates and then updates the issuer's records so that the shares appear electronically in the depository. It does not trade, set prices or debit bank accounts.

  1. AConfirming the demat request and updating the issuer's records after the securities are dematerialisedCorrect
  2. BDebiting the client's bank account
  3. CCarrying out trades on behalf of the client
  4. DFixing the price of the shares dematerialised

Explanation

On a demat request, the RTA or issuer verifies the documents, confirms the request electronically and updates records so the depository's holding reflects the dematerialised shares. Trading, bank debits and pricing are not RTA functions.

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