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NISM Certifications · NISM-Series-VI: Depository Operations · Depository and its Business Partners

Which of the following is a function that a Registrar and Transfer Agent (R&TA) performs as a business partner of a depository, in relation to dematerialisation?

An R&TA processes dematerialisation requests by verifying the certificates, cancelling them, and confirming the request to the depository so that the securities are credited to the client's account in electronic form. Debiting accounts, granting membership and setting margins are done by other entities.

  1. ADebiting the client's demat account on a market sale
  2. BConfirming dematerialisation requests and crediting the securities in electronic form through the depository after cancelling the certificatesCorrect
  3. CGranting trading membership to brokers
  4. DFixing the margin for the client's trades

Explanation

On a demat request, the issuer or its R&TA verifies the request, destroys or cancels the certificates and confirms it to the depository, which then credits the client's account. The other options belong to DPs, exchanges or clearing members.

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