n NISM Certifications
VII NISM Series VII
Medium

The relationship between a broker, who is also a DP, and the depositories is governed by an agreement made between the two under the ________ Act.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    SEBI Act

  2. Depositories Act

    Correct answer

  3. C

    Companies Act

  4. D

    RBI Act

Why this is the answer

A broker registered as a Depository Participant (DP) provides depository services as per the SEBI Act, 1992, and the Depositories Act, 1996. The agreement between the DP and the depository defines their operational relationship.

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