Arrange the following in the correct order of the working of the Demat System.
(A) An account opening form and documentation (PAN card details, photograph, power of attorney) may be completed.
(B) If shares are applied in a public offer, simple details of DP and demat account are to be given and the shares on allotment would automatically be credited to the demat account.
(C) The physical certificate is to be given to the DP along with a dematerialization request form.
(D) A Depository Participant (DP), either a bank, broker, or financial services company, may be identified.
Choose the correct answer from the options given below:
Arrange the following in the correct order of the working of the Demat System.
(A) An account opening form and documentation (PAN card details, photograph, power of attorney) may be completed.
(B) If shares are applied in a public offer, simple details of DP and demat account are to be given and the shares on allotment would automatically be credited to the demat account.
(C) The physical certificate is to be given to the DP along with a dematerialization request form.
(D) A Depository Participant (DP), either a bank, broker, or financial services company, may be identified.
Choose the correct answer from the options given below:
Solution
In the demat system, a Depository Participant is first identified (D). Then the account opening form and documentation such as PAN details and photograph are completed (A). Physical certificates are surrendered to the DP with a dematerialisation request form (C). Finally, shares applied for in a public offer are automatically credited to the demat account on allotment (B). Sequence: D, A, C, B.