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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations

A beneficial owner wants to move securities from his demat account with one DP to his own demat account with another DP, both in the same depository (NSDL), outside the stock exchange trade settlement. Which type of transaction is this?

This is an off-market transfer. Securities are moved directly between two demat accounts, here with different DPs, without any stock exchange trade or clearing corporation settlement. On-market transfers relate to exchange trades, while rematerialisation converts electronic holdings back into physical certificates.

  1. AOff-market transferCorrect
  2. BOn-market transfer
  3. CEarly pay-in
  4. DRematerialisation

Explanation

A transfer made directly between two demat accounts without going through a stock exchange settlement is an off-market transfer. On-market transfers are linked to exchange trades and pay-in through the clearing corporation. Early pay-in is also a settlement-related transfer, and rematerialisation converts electronic holdings into physical certificates.

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