Skip to content

NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

A company announces a bonus issue, and a BO who held shares on the record date finds the bonus shares not credited in his demat account although other holders received them. His DP confirms his account details are correct. What should the DP's best course of action be to help him?

The DP should help the BO approach the issuer or its Registrar and Transfer Agent, since they process corporate action credits through the depository. The DP can assist in follow-up. Closing the account, debiting shares or denying electronic credit would be incorrect and does not resolve the issue.

  1. ATell him bonus shares are never credited electronically
  2. BAdvise the BO to approach the issuer or its Registrar and Transfer Agent, who handle corporate action credits, and help follow up with the depositoryCorrect
  3. CClose his demat account and reopen it
  4. DDebit his account for the missing shares

Explanation

Corporate action credits are processed by the issuer through its RTA, which gives instructions to the depository for crediting. When credit is missing despite correct details, the BO should take it up with the issuer or RTA, with the DP assisting. Closing the account or debiting would be wrong and baseless.

Did you get it right without looking?

One question tells you little. A timed set on Investor Services (NISM VI) shows your real accuracy, how long you take and where you lose marks.

Practise Investor Services (NISM VI)Free diagnostic mock

More Investor Services (NISM VI) questions