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

A client holds securities in dematerialised form and wants to convert some back into physical certificates. Which statement correctly describes the process?

The client submits a Rematerialisation Request Form to the DP, which passes it through the depository to the issuer or registrar. Once accepted, the securities are debited from the demat account and physical certificates are issued by the issuer.

  1. AThe client submits a Rematerialisation Request Form to the DP, the DP sends the request to the depository and then the issuer or its registrar, and the demat balance is debited upon acceptanceCorrect
  2. BThe client directly requests the depository without involving the DP, and certificates are issued by the stock exchange
  3. CThe client may rematerialise only securities that were originally held in physical form
  4. DRematerialisation is automatic when a client closes the demat account

Explanation

Rematerialisation is initiated by the client through the DP using a Rematerialisation Request Form. The request goes to the depository and the issuer or registrar, and the account is debited. It is not limited to securities originally held physically, and the exchange does not issue certificates.

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