NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation
Mr. Iyer submits physical share certificates for dematerialisation through his DP. After the DP's request is processed, which entity actually confirms the demat request and instructs the depository to credit the securities to the investor's account?
The issuer company, acting through its Registrar and Transfer Agent, confirms the demat request. After verifying the certificates, it informs the depository, which then credits the investor's demat account. Exchanges, SEBI and clearing corporations are not part of this confirmation step.
- AThe issuer company through its Registrar and Transfer AgentCorrect
- BThe stock exchange where the shares are listed
- CThe Securities and Exchange Board of India
- DThe clearing corporation
Explanation
On a demat request, the DP forwards the request electronically to the depository, which passes it to the issuer's RTA. The RTA verifies and accepts the request, then confirms to the depository, which credits the account. The exchange, SEBI and clearing corporation play no role in confirming.
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