NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation
While accepting a dematerialisation request, the DP must make a mark on the share certificates submitted by the client. What is this mark?
The DP marks the certificates as 'Surrendered for Dematerialisation' before sending them to the issuer or its registrar. This marking shows the securities are being converted into electronic form and prevents the certificates being used for any other purpose.
- ASurrendered for dematerialisationCorrect
- BCancelled and transferred
- CLodged for transfer
- DPledged with depository
Explanation
The DP stamps or marks each certificate 'Surrendered for Dematerialisation' and records the DRF details, so the certificates cannot be used again for any other purpose. 'Cancelled' marking is done later by the issuer or RTA after confirmation.
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