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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Debt Instruments and Government Securities

A client holds Government securities in a Subsidiary General Ledger (SGL) account with a bank and wants them held in electronic form with a depository. Which step is generally needed to bring them into the depository system?

The client should arrange for the securities to be transferred from the SGL account to the demat account through the DP under the prescribed process. No physical delivery, equity-market sale or conversion to equity shares is involved in holding G-secs electronically.

  1. ATransfer from the SGL account into the client's demat account through the DP, following the applicable processCorrect
  2. BPhysically deliver the securities to the issuer for printing
  3. CSell them in the equity cash market and repurchase them
  4. DConvert them into equity shares first

Explanation

Government securities held in SGL form can be moved to a demat account by transferring them through the DP under the prescribed process. Physical delivery, equity-market sale and conversion into equity are not part of that process.

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