Question

The Depository provides its services to investors through its agents called _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .

• A. Registered Owner
• B. Beneficiary owner
• C. Depositary Participants
• D. Agencies

Hint:

Remember: Depository (NSDL/CDSL) → Depository Participants (Banks/Brokers) → Investors. DPs are the service providers/internediaries for investors.

Answer 1

The Correct Option is C

Step 1: Understand the structure of the depository system.
The depository system in India operates through a three-tier structure: Depository (NSDL/CDSL): The apex body that holds securities in electronic form Depository Participants (DPs): Agents/intermediaries appointed by the depository Investors: The ultimate beneficiaries who hold securities 

Step 2: Understand the role of Depository Participants. 
Depository Participants (DPs) are the intermediaries who act as a link between the depository and the investors. They are authorized to: Open and maintain demat accounts for investors Facilitate dematerialization and rematerialization Execute transfers and settlements Provide account statements and other services 

Step 3: Analysis of each option.
(A) Registered Owner: Incorrect. The depository is the registered owner of securities in the company's records. (B) Beneficiary owner: Incorrect. The investor is the beneficiary owner who holds beneficial interest in the securities. (C) Depositary Participants: {Correct.} DPs are the agents through which depositories provide services to investors. (D) Agencies: Incorrect. Too vague and not the specific term used in the depository system. 

Step 4: Conclusion.
Investors cannot directly access the depository. They must approach Depository Participants (DPs) who are registered with the depository to open demat accounts and avail various services. 

Final Answer: (C) Depositary Participants