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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

A BO complains that bonus shares announced by a company were not credited to her demat account though she held shares on the record date. What should the DP primarily check first?

The DP should first check that the BO held the shares on the record date and whether the credit was received via the Registrar or depository. Corporate action credits depend on record-date holdings and issuer instructions, not on unrelated factors.

  1. AWhether the BO's holding on the record date was in the account and whether the company's credit was received through the Registrar/depositoryCorrect
  2. BWhether the BO has a savings bank account
  3. CWhether the BO has pledged all other securities
  4. DWhether the DP has more than 1,000 clients

Explanation

Corporate action credits depend on holdings on the record date and on the issuer or its Registrar and Transfer Agent sending credit details to the depository. The DP should confirm the record-date holding and trace the credit with the depository or RTA. The other options are irrelevant.

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