NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations
A BO wishes to freeze his demat account. Which statement correctly describes a 'total freeze' as opposed to a 'debit freeze'?
In a total freeze, both debits and credits are blocked in the BO account. A debit freeze only stops securities from going out, whereas a total freeze also stops securities coming in, and neither depends on holding period or pledge status.
- ABoth debits and credits are blocked in the accountCorrect
- BOnly credits are blocked while debits are allowed
- COnly pledged securities are blocked
- DOnly securities held in the account for under one year are blocked
Explanation
A debit freeze stops debits only, so credits can still occur. A total freeze blocks both debits and credits. Freezing is not linked to holding period or pledged status, so the other options are incorrect.
Did you get it right without looking?
One question tells you little. A timed set on Functions of Depository Participant - Account Operations shows your real accuracy, how long you take and where you lose marks.
More Functions of Depository Participant - Account Operations questions
- Ms. Kavita Rao, a BO, loses her unused Delivery Instruction Slip (DIS) booklet pages. What is the most appropriate action for her to take?
- Mr. Iyer holds shares in his demat account and wants to move them to the demat account of his brother at another DP, without any sale consid…
- Mrs. Iyer submitted a delivery instruction slip (DIS) to her DP. Which of the following is the DP's correct step before executing the instru…
- A BO has lost his unused delivery instruction slip (DIS) booklet. What should the BO do first so that misuse can be prevented?
- Which of the following is generally true regarding a change of address request by a BO at the DP?
- A BO wants to prevent any debit from his demat account but still wants to receive credits such as bonus shares. Which freeze should be place…