NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Trading and Settlement
A client with an account at a DP wants to give delivery instructions for settlement but wishes to ensure that unauthorised transfers are avoided. Which practice is correct regarding the Delivery Instruction Slip (DIS) issued to the client?
The DP issues DIS booklets with pre-printed serial numbers against the client's account and records them, and the client must keep the slips safe and complete them carefully. Signing blank slips or using another DP's slips weakens control and is not correct practice.
- AThe client may sign blank DIS and hand them to the broker for convenience at all times
- BThe DP must issue DIS booklets with pre-printed serial numbers, and the client should keep them safe and fill in details carefullyCorrect
- CThe DP need not track serial numbers of DIS issued
- DDIS from any other DP can be used for the client's account
Explanation
DIS booklets carry pre-printed serial numbers, and DPs must record their issuance to the client. Clients must safeguard them and avoid signing blank slips. Using another DP's slips or ignoring serial tracking is wrong.
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