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

A BO wishes to freeze his demat account because he suspects misuse. Which statement about freezing an account or a specific ISIN is correct?

A debit freeze blocks only outgoing transfers from the demat account, while credits can still come in unless the BO also asks for a credit freeze or a total freeze. Freezing is a BO-requested facility and does not close the account.

  1. AA freeze on debits prevents debit transactions but credits may still be received unless a total freeze is requestedCorrect
  2. BA debit freeze stops both credits and debits automatically
  3. CFreeze can be requested only by the depository, never by the BO
  4. DA freeze automatically closes the account after 30 days

Explanation

Depository rules allow a BO to ask for a freeze on debits, on credits, or on both (total freeze). A debit freeze stops only outgoing transfers; credits continue unless specifically frozen. A freeze does not close the account.

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