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

A DP receives a DIS from a BO for an off-market transfer. Which check should the DP carry out before processing the instruction?

The DP should verify that the DIS is a genuine serially numbered slip issued to that BO, is properly filled in, and that the signatures match the specimen signatures on record. This protects the BO against unauthorised debits. Tax returns or bank details are irrelevant to this check.

  1. AVerify that the DIS is a serialised slip issued to that BO and that the signatures match the specimen on recordCorrect
  2. BConfirm that the receiving party has a savings bank account with the same bank
  3. CAsk the BO to resubmit the instruction in physical share certificate form
  4. DCheck the BO's income tax return for the last year

Explanation

The DP must verify the DIS serial number issued to the BO, the completeness of the slip, and that the signatures agree with the specimen held in records. Bank account matching, share certificates and tax return checks are not part of DIS verification.

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