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

While processing a demat request, the DP stamps each share certificate with the words 'Surrendered for Dematerialisation' and then does which of the following?

After stamping the certificates as surrendered for dematerialisation, the DP sends the demat request electronically through the depository to the issuer or its registrar, and forwards the defaced certificates physically to the RTA. Only then can the RTA confirm and the securities be credited.

  1. ASends the request and certificates directly to the stock exchange
  2. BSends the DRF electronically to the issuer/RTA and forwards the certificates to the RTACorrect
  3. CHands the certificates back to the investor after the credit
  4. DSends the certificates to SEBI for verification

Explanation

After defacing the certificates, the DP records the request in the depository system and sends the demat request electronically to the issuer or its RTA through the depository, while physically forwarding the certificates to the RTA. The exchange and SEBI play no role in this step, and certificates are not returned to the investor.

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