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

In a public issue where shares are allotted in dematerialised form, how does the depository participant of the applicant normally come to know that the allotted shares are to be credited to the client's account?

The applicant mentions the demat account details in the application form, and after allotment the issuer's registrar passes the allottee details to the depository, which credits the shares directly. No later demat request or physical certificate is needed for such an allotment.

  1. AThe applicant gives the demat account details in the application form, and the registrar provides the allotment details to the depository for creditCorrect
  2. BThe DP must separately file an allotment request with the stock exchange for each client
  3. CThe client must submit a demat request form after allotment to convert the shares
  4. DThe issuer sends physical certificates to the DP, which then dematerialises them

Explanation

In a public issue the applicant provides the DP ID and client ID in the application. After finalising allotment, the issuer/registrar passes the details to the depository, which credits the accounts of allottees. No separate demat request is needed because shares are issued directly in electronic form.

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