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

A DP receives a DRF with certificates from Ms. Iyer. Before forwarding the request to the issuer's registrar, what must the DP do with the certificates?

The DP must deface the certificates by marking them 'Surrendered for Dematerialisation' before forwarding them with the DRF to the issuer or its registrar. This prevents reuse of the certificates in physical form once conversion is under way.

  1. AMark 'Surrendered for Dematerialisation' on the certificatesCorrect
  2. BReturn the certificates to the client
  3. CCancel the certificates by tearing them
  4. DDeliver them to the depository for safe custody

Explanation

The DP verifies the certificates and defaces them by stamping 'Surrendered for Dematerialisation' before sending them with the DRF to the registrar. Tearing or returning them is incorrect, and certificates are not sent to the depository for custody.

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