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: Understanding demat accounts.
- A demat account is used to hold securities in electronic form, eliminating the need for physical certificates.
- Depositories are organizations responsible for providing demat services, ensuring secure and efficient handling of securities.
Step 2: Analyzing the options.
The depository acts as the custodian of securities in electronic form, making it the correct answer.
Conclusion: The correct organization is (A) Depository.