A demat request can be rejected in the case of the following objections. The table below gives the reasons for rejection and the action that DPs need to take in case of each objection.
| Description of Objection | Action to be taken by DP/Client | |
|---|---|---|
| 1 | Physical quantity of shares/certificates received by R&T Agent from DP is less than what is mentioned in Demat Request Number or Form OR | DRN confirmed for partial/physical quantity received from DP or treated under objection for total/partial quantity by R&T Agent. R&T Agent may retain documents received from DP. DPI Client may contact R&T Agent for any further clarification and may submit fresh Demat Request Form to R&T Agent for excess quantity, if any, quoting reference of Objection letter and previous DRN to enable R&T Agent to link related entries/documents. |
| 2 | Physical quantity of shares/certificates received by R&T Agent from DP is more than mentioned in Demat Request Number or Form. | |
| 3 | All/some certificates received by R&T Agent from DP is/are found to be fake. | DRN confirmed for genuine/valid quantity received from DP or treated under objection for total/partial quantity by R&T Agent. R&T Agent may retain documents received from DP. DP/client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries/documents. |
| 4 | All/some certificates received by R&T Agent from DP is/are reported lost or stolen and a stop is recorded in computer master file(s) of R&T Agent. | |
| 5 | Duplicate certificates earlier issued by R&T Agent in lieu of all/some certificates received for demat by R&T Agent from DP. | |
| 6 | All/some certificates received by R&T Agent are found to bear forged or fake endorsements of Name(s) of Holders. | |
| 7 | Name(s) of Holder(s) on all/ some certificates received by R&T Agent differs in Demat Request Form received by R&T Agent from DP. OR | DRN confirmed for valid quantity received from DP or treated under objection for total/partial quantity by R&T Agent. R&T Agent may retain documents received from DP. DP/Client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries. DP/Client to submit fresh Demat Request Form to R&T Agent with correct particulars, quoting reference of Objection letter and previous DRN to enable R&T Agent to link related entries/documents. DRN confirmed for valid quantity received from DP or treated under objection for total/partial quantity by R&T Agent. |
| 8 | Details of all/some certificate(s) differ in Demat Request Form received by R&T Agent from DP | |
| 9 | All/some certificate(s) sent to incorrect R&T Agent by DP | R&T Agent may retain some documents and others returned to DP by R&T Agent. DP/ Client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries. DP/Client may forward documents to pertinent R&T Agent with fresh Demat Request Form. |
| 10 | Certificate(s) not received by R&T Agent in time from DP | DRN treated under objection and closed by R&T Agent. DP/Client may forward certificate(s) for dematerialisation with Demat Request Form to R&T Agent under a New/Fresh DRN. |
| 11 | Signature(s) of Client on Demat Request Form do not tally with specimen of signatures Holder(s) recorded with R&T Agent | In case the Issuer/R&T Agent rejects the demat request for signature mismatch and returns the security certificates, the investor upon receipt of the same may submit a fresh demat request by submitting the demat request form, security certificate and a Signature Variation Form. In case the Issuer/RTA has advised for banker’s verification, the investor may also submit a specimen of signature(s) to be verified by a Bank Manager, under his official stamp/seal, giving full particulars/details of holder(s) bank account number, etc. to its Depository Participant for onward submission to the Issuer/R&T Agent. |
| 12 | Stop recorded as per Bank lien/Statutory Authority/Court Order/etc. in computer master file(s) of R&T Agent against all/some certificates) received for dematerialisation from DP | DRN confirmed for valid quantity received from DP or treated under objection for total/partial quantity by R&T Agent. R&T Agent may retain documents received from DP. DP/Client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries/documents. |
| 13 | DRFs can also be rejected on technical grounds. These could be any of the reasons given in i to v given below: | |
| i | Recovery pending from Client for double or excess payment of Dividend/Interest made by R&T Agent | R&T Agent may retain DRN treated under objection by R&T Agent and documents received from DP. DP/Client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries. Client to refund of amount to R&T Agent, quoting reference of Objection letter and DRN to enable R&T Agent to link related entries/documents. |
| ii | Duplicate Interest warrants issued by R&T Agent as per request of Client and bank reconciliation incomplete to determine status of payment. | R&T Agent may retain DRN treated under objection by R&T Agent and documents received from DP. DP/Client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries. DP/Client to await some time for bank reconciliation completion by R&T Agent, before DRN is confirmed or treated under objection as in 13 (i). |
| iii | All/some certificates) held under different Holding basis(i.e. Single or Joint) is/are received by R&T Agent under same DRN | Refer objection codes 7 and 8 above for action taken by R&T Agent and to be taken by DP/Client. |
| iv | All/some certificates) sent by DP to incorrect address or office(s) of R&T Agent.[All operations of Master Growth and Grand Master schemes of Unit Trust of India are handled on completely decentralised basis and computer masterfile(s) are separately maintained at specific locations. DPs have to therefore, forward documents for demat to R&T Agent's address at Mumbai, Calcutta, Delhi and Chennai mentioned on reverse of every certificate]. | DRN confirmed for valid quantity received from DP or treated under objection for total/partial quantity by R&T Agent. R&T Agent may retain some documents and others returned to DP by R&T Agent. DP/Client may contact R&T Agent for any further clarification, quoting reference of Objection letter to enable R&T Agent to link related entries. DP/Client may forward documents to pertinent address or office(s) of R&T Agent with fresh Demat Request Form. |
| v | All/some certificates) received by R&T Agent from DP do not relate to ISIN (Scheme/Security code) mentioned in Demat Request Number or Form | Refer objection codes 7 and 8 above for action taken by R&T Agent and to he taken by DP/Client. |
The DP has to inform his client about the rejection if and when the R&T Agent has rejected the DRF. In such cases the R&T Agent sends the certificates directly to the client.
