DP despatches the physical certificates along with the DRF to the R&T Agent within 7 days of receipt from the client.
If the Issuer or its R&T Agent finds the DRF to be in order, it informs the depository and authorizes it to create the appropriate credit balance in the client's account. The DP issues a statement of transaction to the client
Objection / Rejection of DRF by RTA - 1. RTA informs DP along with reason for rejection, 2. DP informs client and takes steps to resolve, 3. If DP fails to resolve within 15 days, then RTA will send Certificates to DP, 4. DP will send certificate to clients.
An R&T Agent is required to confirm/ reject a demat request within 15 days from the date of receipt of physical shares.
Pledge and Hypothecation - The creation of pledge and hypothecation against securities which are held in demat mode is permitted under section 12 of the Depositories Act, 1996.
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