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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Trading and Settlement

Which of the following is an off-market transfer rather than a market transfer in a depository?

A gift of shares from father to son by direct transfer between demat accounts is an off-market transfer because it happens outside the stock exchange trading system. Transfers linked to exchange trades, such as pool account debits and pay-out credits, are market transfers.

  1. AA transfer from the client account to the clearing member pool account for settling an exchange trade
  2. BA gift of shares from a father to his son by transfer between their demat accounts without an exchange tradeCorrect
  3. CA pay-out credit from the clearing corporation to the clearing member
  4. DA transfer in an exchange settlement of a delivery-based trade

Explanation

Off-market transfers are settled directly between parties outside the exchange, such as gifts or transfers to family. The other options all form part of exchange trade settlement and are market transfers.

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