NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations
Mr. Sharma, a BO, wants to freeze his demat account so that no debits can be made, though credits can still be received. Which type of freeze should he request?
He should request a debit freeze. Under a debit freeze, no debits can be processed in the account, but credits continue to be accepted. A total freeze would block both, and a credit freeze blocks only incoming credits.
- ATotal freeze
- BDebit freezeCorrect
- CCredit freeze
- DISIN-level credit freeze
Explanation
A debit freeze prevents debit transactions in the account while credits are still accepted. A total freeze blocks both debits and credits, and a credit freeze blocks only credits. The ISIN-level option applies to a specific security rather than the entire account for debits.
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