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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Ms. Rao complains that she has not received an electronic credit of a dividend that was declared on shares held in her demat account. Which is the most likely first check by the DP?

The DP should first verify that the bank account details in her demat record are correct and current. Dividends are paid using the details held by the depository on the record date, so outdated or wrong details commonly cause failed credits.

  1. AWhether her bank account details recorded in the demat account are correct and updatedCorrect
  2. BWhether she has pledged her shares
  3. CWhether her DP charged her annual fee
  4. DWhether the shares were rematerialised last year

Explanation

Dividend payment to demat holders depends on the bank details held in the depository records on the record date, so incorrect or outdated details are the common cause of failure. Fees and unrelated rematerialisation do not explain a missed dividend credit; a pledge does not transfer dividend entitlement.

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