NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners
Meena asks which business partner of a depository handles the physical share certificates sent for dematerialisation and confirms the request to the depository after verification with the issuer. Which entity is this?
The Registrar and Transfer Agent, or the issuer's share transfer agent, verifies physical certificates received through the DP and confirms the demat request to the depository. Brokers, clearing members and custodians do not verify the issuer's share records.
- AClearing Member
- BRegistrar and Transfer Agent or the issuer's share transfer agentCorrect
- CCustodian bank
- DStock broker
Explanation
On a demat request the DP forwards the certificates to the issuer or its Registrar and Transfer Agent, who verifies them and confirms the request electronically to the depository. Brokers, clearing members and custodians do not carry out this verification of the issuer's records.
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