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

Ms. Rao's DRF for physical shares was sent through her DP to the issuer's registrar. The registrar finds that the signature on the DRF does not match company records and rejects the request. What happens next under the standard process?

The demat request is rejected, and the certificates are returned to the investor through the DP along with the reason for rejection. The investor can correct the defect, such as a signature mismatch, and submit a fresh request.

  1. AThe request is treated as rejected and the certificates are returned through the DP with reasons for rejectionCorrect
  2. BThe shares are automatically credited anyway
  3. CThe depository cancels the demat account
  4. DThe physical certificates are destroyed by the registrar

Explanation

If the registrar rejects a demat request, the documents are returned through the depository system with the reason. The DP then informs the client, who can correct the defect and resubmit.

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