Key Players in OTCEI
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Questions and Answers

What is one of the key roles of a Depository Participant?

  • Offer investment advisory services
  • Facilitate currency exchange services
  • Provide banking services to customers
  • Act as an agent of the Depository (correct)

    • How does a depository system differ from a banking system?

  • Depository facilitates account opening, while a bank provides investment services
  • Depository serves as an intermediary for currency exchange, while a bank holds securities
  • Depository holds securities in accounts, while a bank holds money in accounts (correct)
  • Depository transfers securities, while a bank transfers securities

    • What is a primary function of a Depository Participant?

  • Performs real estate transactions
  • Offers credit card services
  • Provides investment advice to customers
  • Facilitates dematerialization of securities (correct)

    • How does an investor benefit from opening a beneficiary account with a Depository?

    <p>To have securities held electronically</p> Signup and view all the answers

    Which feature is NOT associated with the functions of Depository Participants?

    <p>Providing insurance services</p> Signup and view all the answers

    What distinguishes a Depository Participant from a traditional bank?

    <p>A DP maintains investors' securities account balances</p> Signup and view all the answers

    In the context of depository services, what does 'dematerialization' refer to?

    <p>Converting physical securities into electronic form</p> Signup and view all the answers

    What type of accounts do investors need to open with a Depository Participant to utilize depository services?

    <p>Beneficiary accounts</p> Signup and view all the answers

    Which entity acts as the customer interface of a Depository?

    <p>Depository Participant</p> Signup and view all the answers

    What is one of the key benefits of using a Depository for securities holding?

    <p>Instant transfer of shares and money consideration</p> Signup and view all the answers

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