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

Mr. Raghunath Iyer holds physical share certificates of an Indian listed company and wants to convert them into electronic form. With whom must he submit the Dematerialisation Request Form (DRF) along with the certificates?

The investor submits the Dematerialisation Request Form and the share certificates to his Depository Participant, where he holds a demat account. The DP then processes the request through the depository and sends the certificates to the issuer's registrar for confirmation.

  1. AThe issuer company directly
  2. BHis Depository Participant with whom he holds a demat accountCorrect
  3. CThe stock exchange where the shares are listed
  4. DThe Registrar and Transfer Agent of the company

Explanation

A holder wanting to dematerialise submits the DRF and the physical certificates to the DP where the beneficial owner account is held. The DP then sends the request electronically to the depository and physically forwards the certificates to the issuer's RTA. The issuer, exchange and RTA are not the first point of submission.

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