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

A BO wants to transfer securities from his demat account to another BO's account outside the stock exchange settlement process, without any trade on an exchange. Which type of transaction is this in a depository account?

This is an off-market transfer. It is a direct movement of securities between two beneficial owner accounts that does not pass through a stock exchange settlement, unlike pay-in, auction or rematerialisation, which relate to exchange trades or physical conversion.

  1. AOff-market transferCorrect
  2. BPay-in on a trading day
  3. CAuction settlement
  4. DRematerialisation

Explanation

A transfer made directly between two BO accounts without going through a stock exchange settlement is an off-market transfer. Pay-in relates to exchange trades, auction relates to settlement shortfalls, and rematerialisation converts electronic holdings into physical certificates, so none of these fits.

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