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NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)

An FPI wants to transfer its securities held at a DP to a different FPI demat account of the same entity as part of a restructuring. Which is the generally correct requirement?

The transfer is made by an off-market delivery instruction, with the custodian involved and compliance with FPI regulations. It cannot be done informally, is not prohibited outright, and does not need physical certificates because the securities are already dematerialised.

  1. AThe transfer is done by an off-market delivery instruction, with compliance with applicable FPI regulations and custodian involvementCorrect
  2. BIt can be done informally without any instruction
  3. CIt is prohibited under all circumstances
  4. DIt requires physical share certificates to be issued first

Explanation

Transfers between demat accounts are carried out via delivery instructions, and for FPIs these go through the custodian and must comply with FPI regulations. They are not informal or prohibited outright, and physical certificates are not needed for already dematerialised securities.

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