Skip to content

NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to the Indian Capital Market

Which one of the following statements about the two depositories in India, NSDL and CDSL, is correct?

Both NSDL and CDSL are SEBI-registered depositories, and investors access their services only through depository participants, who act as agents of the depository. Direct account opening with the depository is not allowed, and both handle several kinds of securities.

  1. ABoth are registered with SEBI and provide services to investors only through depository participantsCorrect
  2. BInvestors may open accounts directly with the depository without a DP
  3. CNSDL serves only bonds and CDSL serves only equity shares
  4. DA beneficial owner's account can be held at a depository only with a clearing member of a stock exchange

Explanation

Both NSDL and CDSL are SEBI-registered depositories that deal with investors through their agents, the depository participants. Investors cannot open accounts directly with a depository. Both handle multiple security types, and the DP need not be a clearing member.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to the Indian Capital Market shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to the Indian Capital MarketFree diagnostic mock

More Introduction to the Indian Capital Market questions