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

Mr. Sandeep Joshi's dematerialisation request for physical securities has been confirmed by the registrar, and the issuer has the security already admitted to the depository. Which entity actually gives the confirmation that results in the electronic credit to Mr. Joshi's account?

The issuer or its registrar and transfer agent confirms the demat request electronically to the depository, which then credits the beneficial owner's account through the DP. Stock exchanges, clearing corporations and banks do not confirm dematerialisation of securities.

  1. AThe issuer or its registrar and transfer agent, through the depository system, after which the depository credits the account of the client through the DPCorrect
  2. BThe stock exchange on which the security is listed
  3. CThe Clearing Corporation
  4. DThe investor's bank

Explanation

After verifying the request, the RTA/issuer confirms dematerialisation electronically to the depository, which then credits the BO account via the DP. Exchanges, clearing corporations and banks have no role in confirming demat requests.

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