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

Ms. Kapoor holds 200 physical shares jointly with her husband, the names appearing in the order Kapoor Meera, Kapoor Rohan. She wants to dematerialise them. Which statement is correct?

The demat account must be held in the same names and in the same order as on the share certificates. If the names or order differ, the certificates cannot be dematerialised directly and a transfer or transposition is needed first.

  1. AShe can open a demat account in her sole name and dematerialise them
  2. BThe demat account must have holders in the same names and same order as on the certificatesCorrect
  3. CThe order of names can be changed freely on the DRF
  4. DOnly the first holder needs to sign the DRF

Explanation

Dematerialisation requires the demat account names and their order to match those on the certificates. Otherwise a transfer or transposition would be required first. The sole-name account fails the match rule.

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