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

A client's demat request was rejected by the issuer's RTA because the signature on the DRF did not match the specimen signature with the company. The DP receives the rejected documents. What is the correct way for the DP to deal with this under the demat process?

The DP should return the rejected documents to the client, have the defect cured, and resubmit as a fresh demat request with a new DRN. Shares cannot be credited without the issuer's confirmation, and the depository does not override an RTA rejection.

  1. AProcess a fresh request only after the client rectifies the defect, with the DP using a rejection record such as a Demat Rejection Form and a new DRN for the resubmissionCorrect
  2. BCredit the shares to the client's account anyway, since the DP has verified the client
  3. CAsk the depository to override the RTA's rejection
  4. DDestroy the certificates and close the request

Explanation

Rejected requests are reported through the system and the documents returned to the DP, which hands them to the client. After curing the defect, the DP resubmits as a fresh request with a new DRN. The DP cannot credit shares without the issuer's confirmation, and the depository does not override an RTA rejection.

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