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

Ms. Kavita Nair submits a demat request for shares held in the names of 'Kavita Nair' and 'Suresh Nair' in that order on the certificate. Her demat account is in the names 'Suresh Nair' first and 'Kavita Nair' second. What is the likely outcome?

The request will be rejected because the order of holder names on the certificate must match the order in the demat account. Securities in joint names can be dematerialised only into an account with identical names in identical sequence, so Ms. Nair's mismatched account does not qualify.

  1. AThe request is accepted because both names appear
  2. BThe request is rejected because the order of names does not matchCorrect
  3. CThe request is accepted only after the issuer pays a fee
  4. DThe shares are credited to a separate account automatically

Explanation

Demat requires the names and their order on the certificate to match the account holders' names and order. A difference in sequence leads to rejection of the request. The holder would need to open an account in matching order or take other steps.

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