NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation
A client lodges a demat request for shares, but the signature on the request differs from the specimen signature of the registered holder recorded with the company. What is the most likely outcome at the issuer/RTA level?
The request would most likely be rejected by the RTA or issuer and returned through the DP with reasons. A signature mismatch is a standard ground for demat rejection, and the client must correct the defect and submit a fresh request.
- AThe request is rejected and returned to the DP with the reason, as a demat rejectionCorrect
- BThe shares are credited anyway and the signature is corrected later
- CThe shares are automatically transferred to the DP's own account
- DThe request is converted into a rematerialisation request
Explanation
The RTA/issuer checks documents against its records. A signature mismatch is a ground for demat rejection, and the request is returned with reasons. The DP then informs the client, who can rectify the defect and resubmit.
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