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

A client submits a demat request for shares. After the DP enters it in the depository system, what happens to the request status and the securities until the issuer confirms?

The demat request remains pending, and the securities are credited to the client's account only after the issuer or RTA confirms it through the depository. No provisional credit is given, and the account is not frozen.

  1. AThe request is tracked as pending, and the securities are credited only after the issuer/RTA confirms the dematCorrect
  2. BSecurities are credited immediately and reversed if rejected
  3. CSecurities are credited to the DP's pool account
  4. DThe client's account is frozen for all transactions

Explanation

The DP submits the Demat Request Form electronically to the depository, which passes it to the RTA. Credit to the client's account occurs only on confirmation by the issuer/RTA. Until then the request remains pending and no balance appears.

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