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

Mr. Raghav Iyer holds shares in his demat account and wants to move them to another demat account of his own at a different DP, with no change in beneficial ownership, outside any stock exchange trade. Which instruction type does he need to give his DP?

He should give an off-market transfer instruction. Moving securities between his own demat accounts at different DPs, without any exchange trade settlement, is an off-market transaction. On-market and early pay-in instructions serve exchange-traded settlements, and rematerialisation would convert holdings to physical certificates.

  1. AOff-market transfer instructionCorrect
  2. BOn-market delivery instruction
  3. CEarly pay-in instruction
  4. DRematerialisation request

Explanation

A transfer of securities between demat accounts that is not linked to a trade settled through the exchange clearing mechanism is an off-market transfer, done through a delivery instruction slip (DIS) or its electronic equivalent. On-market and early pay-in instructions relate to exchange trades. Rematerialisation converts holdings to physical form, which he does not want.

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