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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository

Mr. Sanjay Gupta wants to move his demat holdings from one DP to another, both registered with the same depository, without changing the securities' ownership. Which feature of the depository system makes this possible with minimal paperwork?

The investor can move securities between beneficial owner accounts held with different DPs by transfer instructions, without going through physical form. Rematerialisation, fresh certificates or SEBI approval are not required for this routine account shift.

  1. APortability of the demat account by closing and transferring balances using a transfer of securities between BO accountsCorrect
  2. BMandatory rematerialisation before moving to another DP
  3. CApplying to the issuer company for fresh share certificates
  4. DSeeking SEBI's approval for each transfer

Explanation

Investors can shift holdings between BO accounts at different DPs using an off-market transfer or the account-transfer facility, without converting to physical form. Rematerialisation is not required. Issuer certificates and SEBI approval are not needed for such transfers.

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