Question

Name the depositary of the National Stock Exchange.

• A. National Securities Depository Limited
• B. Central Depository Services (India) Limited (CDSL)
• C. ISIN (International Securities Identification Number)
• D. National Depository Securities Limited (NDSL)

Hint:

Remember: NSE \(\Rightarrow\) NSDL (both start with N). BSE \(\Rightarrow\) CDSL. ISIN is the identification number, not a depository.

Answer 1

The Correct Option is A

{Step 1: Understand what a depositary is.}
A depository is an institution that holds securities (like shares, debentures, bonds) in electronic form. It facilitates trading and transfer of securities without physical certificates. {Step 2: Identify the depositories in India.}
India has two main depositories: NSDL (National Securities Depository Limited): The first depository in India, promoted by IDBI, UTI, and NSE CDSL (Central Depository Services (India) Limited): The second depository, promoted by BSE and other financial institutions {Step 3: Identify which depositary is associated with NSE.}
National Stock Exchange (NSE) is associated with NSDL (National Securities Depository Limited) Bombay Stock Exchange (BSE) is associated with CDSL (Central Depository Services Limited) {Step 4: Analysis of each option.}
(A) National Securities Depository Limited: {Correct.} NSDL is the depository for the National Stock Exchange (NSE). (B) Central Depository Services (India) Limited (CDSL): Incorrect. CDSL is the depository for BSE (Bombay Stock Exchange). (C) ISIN (International Securities Identification Number): Incorrect. ISIN is a unique identification number for securities, not a depository. (D) National Depository Securities Limited (NDSL): Incorrect. This is not a valid depository name in India. The correct name is NSDL. {Step 5: Conclusion.}
The depository associated with the National Stock Exchange (NSE) is the National Securities Depository Limited (NSDL). { Final Answer:} (A) National Securities Depository Limited