NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository
Which of the following is a function performed by a depository rather than by the issuer's registrar alone?
A depository maintains investors' securities in electronic form and effects transfers through book entries. Fixing issue prices, underwriting and setting trade margins belong to issuers, underwriters and exchanges or clearing corporations, not to the depository.
- AMaintaining investors' holdings in electronic form and effecting transfers by book entryCorrect
- BFixing the issue price of a public offer
- CUnderwriting the securities of a company
- DSetting the margin on exchange trades
Explanation
A depository holds securities in electronic form and effects transfers through book entries. Pricing an offer, underwriting and margins are functions of issuers, merchant bankers, underwriters and clearing corporations or exchanges.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Depository shows your real accuracy, how long you take and where you lose marks.
More Introduction to Depository questions
- Mr. Iyer wants to know why a depository is described as a 'custodian of securities' that works without physical certificates. Which statemen…
- Mr. Sanjay Gupta wants to move his demat holdings from one DP to another, both registered with the same depository, without changing the sec…
- Company X's shares are held in a depository. Under the Depositories Act, when securities of an investor are held in a depository, who is tre…
- Mrs. Leela Menon asks how many depositories operate in India and who holds the securities of investors in their records. Which is correct?
- In the depository system, who is recognised as the beneficial owner of securities held in a demat account with a depository?
- Ms. Rao, a new investor, asks about the minimum requirement to hold securities in a depository. Which statement is correct?