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

A client of a depository participant holds shares in a demat account and wants to move them to the demat account of his brother, with no change in beneficial ownership being intended as a sale. Which instruction is the appropriate one for this off-market transfer?

The client should submit a signed Delivery Instruction Slip, or equivalent electronic instruction, giving the target BO ID, ISIN and quantity. This is how off-market transfers between demat accounts are executed. Rematerialisation and pledge requests serve different purposes and do not transfer securities between two accounts.

  1. ADelivery Instruction Slip (DIS) signed by the account holder(s) specifying the target BO ID and quantityCorrect
  2. BA rematerialisation request form
  3. CA pledge creation request
  4. DA request for a fresh account opening form of the beneficiary submitted by the transferor

Explanation

An off-market transfer of securities from one BO account to another is carried out by submitting a signed Delivery Instruction Slip (or its electronic equivalent) with the target BO ID, ISIN and quantity. Rematerialisation converts holdings to physical form, and pledge creation only creates a lien without moving ownership. Account opening of the beneficiary is a separate matter.

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