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

Ms. Kavita Sharma has submitted a demat request through her DP. Who ultimately confirms the demat request to the depository so that the securities are credited to her account?

The issuer or its Registrar and Transfer Agent confirms the demat request after verifying the physical certificates. Once confirmed to the depository, the securities are credited to the investor's account through the DP. Stock exchanges and clearing corporations play no role in confirming dematerialisation requests.

  1. AThe issuer or its Registrar and Transfer AgentCorrect
  2. BThe stock exchange where the shares are listed
  3. CThe clearing corporation
  4. DAnother DP chosen by the depository

Explanation

After the DP sends the electronic demat request to the depository, the depository forwards it to the issuer/RTA. The RTA verifies the certificates and confirms the request, after which the depository credits the investor's account. Exchanges and clearing corporations do not confirm demat requests.

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