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

In an IPO where the issuer has opted for a fully dematerialised public offer, how do successful allottees receive their shares?

Allotted shares in a public offer are credited directly to the applicant's demat account mentioned in the application form, through the depository, based on the allotment file given by the registrar and issuer. Physical share certificates are not issued in such dematerialised allotments.

  1. AShare certificates are couriered by the registrar
  2. BShares are credited directly to the allottee's demat account as given in the applicationCorrect
  3. CShares are held by the issuer until the investor opens an account
  4. DShares are credited to the stock exchange's pool account permanently

Explanation

Public issues of securities are made in dematerialised form for allotment. The registrar and issuer give the corporate action file to the depository, and the shares are credited to the beneficiary owner's demat account mentioned in the application. Physical certificates are not issued.

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