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Financial Market Management — CBSE Class 10 board question

Q1. [1]
It keeps the client informed of corporate actions taken or to be taken by the issue of securities, having a bearing on the benefits or rights accruing to the client.
  1. (A) Depository Participant
  2. (B) Bank
  3. (C) Financial Institution
  4. (D) Custodian
Previously asked in CBSE board exam
2025 92 Q5 (iv)
Generated by claude-sonnet-4-6 · 2026-06-15 07:06 · grounding rag
Model Answer

(D) Custodian — A Custodian keeps the client informed of corporate actions taken or to be taken by the issuer of securities, which have a bearing on the benefits or rights accruing to the client.

Explanation

A Custodian is responsible for safekeeping client assets and notifying clients about corporate actions (dividends, bonus issues, rights issues, etc.) that affect their holdings. Do not confuse with a Depository Participant, who only facilitates holding of securities in dematerialised form. In MCQs, focus on the phrase "informs client of corporate actions bearing on benefits/rights."

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