NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Public Offering / Corporate Actions
In a public issue made through the depository system, shares allotted to applicants are credited to their demat accounts. Which entity is responsible for giving the depository the details of the allottees and the number of securities to be credited?
The Registrar to the Issue, acting for the issuer, gives the depository the allotment details so that shares are credited to allottees' demat accounts. The DP only holds the investor's account and the exchange or clearing corporation does not handle IPO credits.
- AThe Registrar to the Issue, on behalf of the issuerCorrect
- BThe stock exchange where the shares will list
- CThe investor's Depository Participant
- DThe Clearing Corporation
Explanation
After finalising the basis of allotment, the Registrar and Transfer Agent working for the issuer passes the allotment file to the depository for crediting the allottees' beneficiary accounts. The DP only maintains the investor's account and does not decide allotment. The exchange and clearing corporation are not involved in the credit of IPO shares.
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