n NISM Certifications
X NISM Series X
Medium

If an investor chooses to re-materialize securities held in demat form, what happens to the electronic holdings?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Securities remain electronic with a new ISIN

  2. B

    Securities get permanently locked in the depository

  3. C

    Only a statement of holdings is issued

  4. Depository debits the demat account and issues physical certificates

    Correct answer

Why this is the answer

Re-materialization converts electronic securities back into physical form by debiting the investor’s demat account and issuing fresh physical share certificates, thereby removing them from the depository system.

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