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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 registrar and transfer agent (RTA) in relation to a depository?

The RTA works for the issuer, connects it electronically with the depository and maintains records of securities holders, both physical and dematerialised. Opening accounts is a DP role and settlement guarantee is a clearing corporation role.

  1. AOpening demat accounts for retail investors
  2. BActing as a clearing member for trades
  3. CProviding electronic connectivity between the issuer and the depository and maintaining the issuer's records of securities in dematerialised and physical formCorrect
  4. DGuaranteeing settlement of trades

Explanation

RTAs act for issuers, maintain the register of holders and connect issuers with depositories for demat, remat and corporate benefits. Account opening is done by DPs. Settlement guarantee is a clearing corporation function.

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