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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Public Offering / Corporate Actions

A company lists its shares through an IPO and the allotment is made in dematerialised form. Where do the allotted shares first get credited for an applicant who has applied with a demat account?

The shares are credited to the applicant's own demat account, identified by the DP ID and client ID provided in the application form. The issuer's registrar passes allotment details to the depository, which credits the beneficiary account, so no physical certificate is needed.

  1. AThe applicant's demat account, using the DP ID and client ID given in the applicationCorrect
  2. BThe registrar's physical register only
  3. CThe stock exchange's clearing account permanently
  4. DThe issuer company's own demat account

Explanation

In a public issue where the investor applies with demat details, the registrar and issuer give the allotment information to the depository, which credits the shares to the beneficiary owner account indicated in the application. The other options do not describe where allottees receive their shares.

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