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

After a demat request is accepted, who actually credits the securities to the client's demat account through the depository system?

Securities are credited when the issuer or its RTA accepts the request and confirms it electronically to the depository, which then credits the client's demat account. The DP, the stock exchange and the broker do not themselves create the credit.

  1. AThe issuer or its RTA confirms the request electronically to the depository, which credits the client's accountCorrect
  2. BThe DP credits the account on receiving the DRF
  3. CThe stock exchange credits the account
  4. DThe client's broker credits the account

Explanation

The RTA, after verification, creates the electronic holding by confirming the request to the depository, which then credits the BO account via the DP. The DP does not credit on its own on receipt, and exchanges or brokers play no role in the credit.

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