Multiple choice general knowledge

In case of demat securities, delivery of securities from broker to the clearing corporation is done

  1. through rematerialisation

  2. through physical delivery by broker

  3. electronically by the depository

  4. electronically by the stock exchange
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For demat securities, delivery occurs electronically through the depository system when brokers transfer shares to the clearing corporation. Rematerialization converts electronic to physical form, opposite of what's needed. Physical delivery and stock exchange transfers are not applicable to demat securities.

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