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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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