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

A client with a demat account wants to hold Government Securities (G-Secs) issued by the Central Government in electronic form through a Depository Participant. In which form are such securities held in the demat account?

Government securities in a demat account are held as book entries, meaning electronic records in the depository system. No physical certificate, promissory note or stock certificate is issued or held by the DP for such holdings.

  1. AAs a physical Subsidiary General Ledger certificate
  2. BAs a book entry in the demat accountCorrect
  3. CAs a promissory note kept with the DP
  4. DAs a stock certificate kept with the issuer

Explanation

Government securities held in a demat account are maintained as electronic book entries. Physical certificates or notes are not issued for holdings in a depository account, so the other options describe forms that are not used in demat holding.

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