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

A DP receives a delivery instruction slip (DIS) from a client in which the quantity in figures differs from the quantity in words. What should the DP do?

The DP should reject the instruction. A delivery instruction slip with a mismatch between quantity in figures and in words is defective, and the DP must not guess the client's intent. The client must submit a correctly completed slip or have the alteration properly authenticated.

  1. AExecute using the quantity in figures
  2. BExecute using the quantity in words
  3. CReject the instruction and not execute it as the slip is not properly filledCorrect
  4. DExecute for the lower of the two quantities

Explanation

A DP must check that the DIS is complete and free of discrepancies before processing. Mismatched figures and words create ambiguity, so the instruction should not be executed on assumption; it should be rejected or returned for correction. Choosing either quantity or the lower would be guessing the client's intent.

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