NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations
A BO issues a delivery instruction for an off-market transfer using a paper DIS. Which of the following is a necessary check by the DP before processing?
The DP must verify the signatures on the delivery instruction slip against the specimen signatures on record. This confirms the instruction is authorised by the account holders; holding period, issuer approval or fresh KYC of the receiver are not required checks.
- AVerifying the signature(s) on the DIS against the specimen signature(s) held in recordsCorrect
- BObtaining a fresh KYC from the receiving party
- CConfirming that the shares were bought at least one year ago
- DGetting approval from the issuer company
Explanation
The DP must verify that the DIS is genuine, signed by all holders as per the account operation mode, and matches the specimen signatures. Holding period and issuer approval are not requirements for a transfer of fully paid, free securities.
Did you get it right without looking?
One question tells you little. A timed set on Functions of Depository Participant - Account Operations shows your real accuracy, how long you take and where you lose marks.
More Functions of Depository Participant - Account Operations questions
- Mr. Sharma, a BO, wants to freeze his demat account so that no debits can be made, though credits can still be received. Which type of freez…
- A BO's demat account has a standing instruction to receive credits automatically. The BO holds securities in a joint account with two holder…
- Which of the following is a statement of a BO's account activity that a DP must provide to the BO at the prescribed periodic interval where …
- A DP receives a delivery instruction slip from a BO. Which check is most essential before the DP processes the debit instruction in its syst…
- A BO wants to give a delivery instruction to transfer shares from his demat account to another BO's account for an off-market sale. Which do…
- Ms. Nair has lost her unused delivery instruction slip booklet. What should she ideally do first?