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NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners

Mr. Iyer wants to know the role of the Registrar and Transfer Agent (RTA) in the demat process when he submits physical share certificates through his DP. What does the RTA/issuer do after receiving the dematerialisation request electronically from the depository?

The RTA or issuer verifies the physical certificates, mutilates and cancels them, and confirms the dematerialisation request to the depository. On this confirmation the depository credits the securities to the investor's demat account through the DP.

  1. AIt confirms the request to the depository after verifying and cancelling the physical certificates, so that the depository can credit the accountCorrect
  2. BIt credits Mr. Iyer's demat account directly without informing the depository
  3. CIt sells the shares on the exchange on behalf of Mr. Iyer
  4. DIt opens a new demat account for Mr. Iyer with another DP

Explanation

After the DP forwards the request and certificates, the issuer/RTA verifies them, cancels the certificates and confirms the demat request to the depository, which then credits the client's account. The RTA does not credit accounts itself, sell shares or open accounts.

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