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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations

A BO submits a delivery instruction slip (DIS) for an off-market transfer to the DP. Which of the following checks must the DP carry out before processing the instruction?

Before processing, the DP must verify that the DIS belongs to the DIS booklet issued to that account and that the signatures of the account holders match the specimen signatures held. Issuer approval, minimum holding periods or the receiver's account age are not required for routine transfers.

  1. AVerify that the BO's signature matches the specimen signature and that the DIS is from the DIS book issued to that accountCorrect
  2. BConfirm that the receiving BO has held the account for at least one year
  3. CObtain approval from the issuer company for each transfer
  4. DCheck that the securities have been held for at least 30 days

Explanation

The DP must verify the DIS is genuine, issued to that account, properly filled, and that the signatures match the specimen records. There is no issuer approval or minimum holding period requirement for ordinary transfers, and the receiving account's age is irrelevant.

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