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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Public Offering / Corporate Actions

In a public issue made in dematerialised form, which of the following is the correct sequence for a successful allottee to receive shares?

After allotment is finalised, the issuer, through its registrar, informs the depository, and the shares are credited directly to the allottee's demat account whose details were given in the application. No physical certificates are issued or later dematerialised.

  1. AThe issuer credits the shares to the allottee's demat account after finalisation of allotment, via the depository using the details given in the applicationCorrect
  2. BThe registrar sends physical certificates, which the allottee must then dematerialise
  3. CThe stock exchange credits shares to the allottee's trading account
  4. DThe DP of the issuer debits the allottee's bank account and credits shares to the DP's own account

Explanation

Applicants give their demat account details in the application. After allotment is finalised, the issuer/registrar passes the allotment details to the depository, which credits the shares to the beneficiary accounts. Physical certificates are not issued for demat-mode allotment.

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