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

Under SEBI norms, which of the following describes the position on a demat request lodged for partly paid-up or locked-in shares?

Partly paid-up shares cannot be dematerialised, whereas locked-in shares can be, with the lock-in details and release date recorded in the depository system. The restriction therefore continues in electronic form until the lock-in period ends, so the first statement is correct.

  1. APartly paid-up shares cannot be dematerialised, while locked-in shares can be dematerialised with the lock-in carried overCorrect
  2. BBoth can be dematerialised without any restriction
  3. CLocked-in shares cannot be dematerialised, while partly paid shares can
  4. DNeither can ever be held in demat form

Explanation

Partly paid-up securities are not eligible for dematerialisation. Locked-in securities may be dematerialised, and the lock-in is recorded in the depository system with the same expiry date. Thus the lock-in continues after conversion.

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