NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market
Which of the following is the primary function of a registrar and transfer agent (RTA) in the securities market?
A registrar and transfer agent maintains the records of an issuer's security holders and processes transfers, allotments and related investor service work for the issuer. It does not guarantee settlement, execute exchange orders, or provide margin funding.
- AGuaranteeing settlement of trades
- BMaintaining records of security holders and handling transfers and allotment work for issuersCorrect
- CExecuting buy and sell orders on the exchange
- DProviding margin funding to brokers
Explanation
RTAs act for issuers, maintaining holder records, processing transfers and supporting allotment and corporate actions. They do not guarantee settlement, trade, or lend margin.
Did you get it right without looking?
One question tells you little. A timed set on Market Participants in the Securities Market shows your real accuracy, how long you take and where you lose marks.
More Market Participants in the Securities Market questions
- Which market participant stands between the buying and selling clearing members after trades are novated, becoming the legal counterparty to…
- A stock broker receives Rs 5,00,000 from a client for buying shares. Under SEBI rules on client funds, what must the broker do with this mon…
- A stock broker wants to hold clients' funds and securities. Under SEBI rules on client money, which practice is correct?
- In the Indian securities market, which entity acts as the legal counterparty to every trade through novation once the trade is accepted for …
- A trading member's client defaults and the member is unable to meet its obligation to the clearing corporation. Which fund maintained by the…
- Which of the following entities acts as the legal counterparty to every trade novated to it on an Indian stock exchange, thereby guaranteein…