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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation

Mr. Iyer submits a Dematerialisation Request Form (DRF) with his physical share certificates to his Depository Participant. What must he do with the certificates before handing them over so that the DP can process the request?

The certificates must be marked or stamped 'Surrendered for Dematerialisation' (defaced and cancelled) by the DP. This prevents their reuse while the issuer or its registrar verifies and processes the demat request. Notarisation or endorsement to the company is not required.

  1. ACancel the certificates by marking them 'Surrendered for Dematerialisation' on the face of the certificateCorrect
  2. BGet the certificates notarised by a magistrate
  3. CEndorse the certificates in favour of the issuer company
  4. DDeface only the signature of the first holder

Explanation

The DP defaces the certificates by stamping them 'Surrendered for Dematerialisation' before forwarding them to the issuer's registrar, so they cannot be used again. They are not notarised or endorsed in favour of the company.

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