Multiple choice general knowledge

As per the depository participant-client agreement, who has right to terminate an agreement?

  1. Only depository participant.

  2. Only Client.

  3. Only NSDL.

  4. Both depository participant and client.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The DP-client agreement can be terminated by either party with proper notice. This mutual termination right protects both the investor and the depository participant. NSDL is not a party to this specific agreement. unilateral termination would create an imbalance in the relationship.