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

Ms. Kavita Rao submitted a demat request for certificates in her name only, but her demat account is held jointly as Kavita Rao and Suresh Rao. What is the position regarding the request?

The request is rejected, because shares can be dematerialised only into a demat account whose holders' names, and their order, are identical to those on the certificates. A joint account does not match a certificate in a single name, so a matching account is required.

  1. AIt is accepted since one name matches
  2. BIt is rejected because the names and order on the certificates must match the account holders' names exactlyCorrect
  3. CIt is accepted only if the second holder signs as witness
  4. DIt is accepted and the account is converted to single name

Explanation

Securities can be dematerialised only into an account whose holder names and their order match those on the certificates. Since the certificates carry one name and the account has two, the request is rejected; a matching account is needed.

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