Question

For holding securities in an electronic form, the investor has to open a demat account with an organisation called:

• A. Depository
• B. Securities and Exchange Board of India
• C. Stock Exchange
• D. Mutual Fund

Hint:

A depository like NSDL or CDSL provides electronic storage for securities, ensuring safety and convenience for investors.

Answer 1

The Correct Option is A

Step 1: Demat Account Fundamentals.
- Demat accounts facilitate the storage of securities electronically, negating the requirement for physical share certificates.
- Depositories, as entities, are tasked with delivering demat services, thereby guaranteeing the secure and streamlined management of securities.
Step 2: Evaluation of Choices.
The depository functions as the guardian of dematerialized securities, thus identifying it as the accurate response.
Conclusion: The appropriate entity is (A) Depository.