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

While accepting physical certificates for dematerialisation, the DP must ensure that the certificates are defaced in a particular manner. What is the required marking?

The DP must deface each physical certificate by marking it 'Surrendered for Dematerialisation' before forwarding it to the issuer or registrar. This ensures the certificate cannot circulate in physical form again while the securities are being converted into electronic holdings in the depository.

  1. AStamped 'Surrendered for Dematerialisation'Correct
  2. BStamped 'Cancelled and Void'
  3. CStamped 'Duplicate Copy'
  4. DStamped 'Transferred to Depository'

Explanation

The DP defaces each certificate by stamping or marking it 'Surrendered for Dematerialisation' before sending it to the issuer or registrar. This prevents the certificates from being used again in the physical market. The other markings are not the prescribed ones.

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