NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)
A BO wants to freeze his demat account so that no debits can happen for a period. Which statement is correct about the freeze facility?
A BO can request the DP, using the prescribed signed form, to freeze the account or particular securities for debits, credits or both. The DP processes the request without needing a court order or direct depository action.
- AFreezing is available only for credits, never debits
- BA BO can request the DP to freeze the account for debits, and the DP must act on a duly signed request in the prescribed formCorrect
- CFreezing can only be done by the depository on its own
- DFreezing requires a court order always
Explanation
A BO may ask the DP to freeze the account or specific ISINs for debits, credits or both, using the prescribed form. The DP acts on the signed request. It does not need a court order, and it is not exclusively a depository action.
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