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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Trading and Settlement

A client sold shares through a broker on the exchange and wants the shares to leave his demat account for settlement. Which instruction does he give his DP for the pay-in of securities in an on-market trade?

The client gives the DP a Delivery Instruction Slip for an on-market transfer, moving the securities into the clearing member's pool account before the pay-in deadline. Demat, pledge and nomination requests serve other purposes and do not deliver sold shares for exchange settlement.

  1. ADelivery Instruction Slip (DIS) for an on-market transfer to the clearing member's pool accountCorrect
  2. BRequest for dematerialisation to the issuer
  3. CPledge creation request to the broker
  4. DNomination form in favour of the clearing corporation

Explanation

For on-market sales, the client gives a DIS to the DP to move securities to the clearing member's pool account before pay-in deadline. Demat requests, pledge and nomination serve different purposes and do not deliver securities for settlement.

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