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      Question

      According to the provision of the Depositories Act

      regarding the relationship between a depository and a participant, what is required for a depository to operate with participants?
      A A depository can operate without any formal agreement with participants Correct Answer Incorrect Answer
      B A depository must enter into a partnership with participants to act as its agent Correct Answer Incorrect Answer
      C A depository shall enter into an agreement with one or more participants to act as its agent Correct Answer Incorrect Answer
      D A depository must obtain approval from the Securities and Exchange Board of India before working with participants Correct Answer Incorrect Answer
      E A depository can only work with a single participant without requiring an agreement Correct Answer Incorrect Answer

      Solution

      Section 4. Agreement between depository and participant—(1) A depository shall enter into an agreement with one or more participants as its agent.

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