NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Dematerialisation
While submitting share certificates for dematerialisation, the DP stamps each certificate with a specific remark before sending them to the issuer. What is this remark?
The DP defaces the certificates and marks them "Surrendered for Dematerialisation" before sending them to the issuer or RTA. This prevents the certificates from being used or traded again while the dematerialisation request is being processed.
- A"Surrendered for Dematerialisation"Correct
- B"Transferred to Depository"
- C"Cancelled by Participant"
- D"Held in Escrow"
Explanation
The DP defaces and marks each certificate with "Surrendered for Dematerialisation" so it cannot be used for any other purpose. The other phrases are not the prescribed mark.
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