What is the role of a Depository Participant in the securities market?(1.0 Marks)Selling Securities Directly To InvestorsAProviding Trading Advice To InvestorsBSafeguarding And Maintaining Securities In Electronic FormCAuditing Stock Exchanges
Question
What is the role of a Depository Participant in the securities market?(1.0 Marks)Selling Securities Directly To InvestorsAProviding Trading Advice To InvestorsBSafeguarding And Maintaining Securities In Electronic FormCAuditing Stock Exchanges
Solution
The role of a Depository Participant (DP) in the securities market is to safeguard and maintain securities in electronic form. This means that the DP holds the securities of investors in electronic form, eliminating the need for physical certificates. This process is known as dematerialization. The DP also facilitates the transfer of securities during the trading process, ensuring that transactions are processed efficiently and securely. Therefore, the correct answer is C.
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