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

Ms. Rao has a demat account and wants to prevent any debits from it because she suspects misuse of her DIS book. Which facility lets her block debits while still permitting credits?

She should request a debit freeze on her account. A debit freeze blocks outgoing transfers while allowing credits to continue, unlike closure, rematerialisation or a basic services demat account, which do not serve as a blocking facility.

  1. AAccount freeze for debits onlyCorrect
  2. BClosure of the account
  3. CRematerialisation of all holdings
  4. DConversion to a basic services demat account

Explanation

A BO may request a freeze on the account or on specific ISINs. A debit freeze stops debits while credits can continue; closure would end the account and remat is unrelated to blocking. A BSDA is a category with fee and holding limits, not a freeze.

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