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

After the issuer confirms a demat request, how are the securities reflected for the client?

Once the issuer confirms the request, the depository credits the client's demat account with the confirmed number of securities through the DP. No new certificate is issued, and the DP's own account is not used.

  1. AThe depository credits the client's demat account with the number of securities confirmedCorrect
  2. BThe RTA issues a new certificate in the DP's name
  3. CThe client receives a letter that is traded as security
  4. DThe shares are credited to the DP's own account first

Explanation

After confirmation, the RTA/issuer electronically confirms to the depository, which credits the beneficial owner's account through the DP. Securities are not credited to the DP's proprietary account, and no new certificates are issued.

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