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

Ms. Iyer submitted a demat request through her DP for shares held in physical form. The DP forwarded the request electronically to the depository, which passed it to the Registrar and Transfer Agent. What does the RTA do after verifying the documents and certificates?

After verifying the documents and certificates, the RTA confirms the demat request to the depository electronically. The depository then credits the securities to the investor's demat account through the DP. The RTA cannot credit the account itself, because the depository maintains the electronic records.

  1. AConfirms the demat request to the depository, which then credits the investor's accountCorrect
  2. BCredits the shares directly to the investor's demat account
  3. CReturns the certificates to the investor for stock exchange validation
  4. DAsks the DP to issue new physical certificates in the depository's name

Explanation

After the issuer or RTA accepts the request and cancels the certificates, it confirms the request to the depository electronically. The depository then credits the investor's account through the DP. The RTA does not credit accounts directly because only the depository does so.

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