NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation
A DP receives a DRF with share certificates, and before sending them to the registrar it must deface them. Which marking is made on the certificates by the DP?
The DP defaces the certificates by marking them "Surrendered for Dematerialisation" before forwarding them with the request to the issuer or registrar. This ensures the physical certificates cannot be reused or traded while the electronic credit is being processed.
- A"Surrendered for Dematerialisation"Correct
- B"Cancelled by Exchange"
- C"Transferred to Pledgee"
- D"Duplicate Issued"
Explanation
The DP defaces each certificate by stamping "Surrendered for Dematerialisation" so it cannot be used again. The other markings relate to unrelated events and are not used in the demat process.
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