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

Mr. Iyer, a BO, informs his DP that his Delivery Instruction Slip booklet has been lost. What should the DP do on receipt of this request?

The DP should take written intimation, block the lost slip numbers in its system so they cannot be used, and then issue a new DIS booklet following its procedure. Waiting for misuse would defeat the purpose of safeguarding the account, and closing the account or alerting issuers is unnecessary.

  1. AStop the use of the lost slips by marking them as lost in the system and issue a new booklet after due procedureCorrect
  2. BIgnore the request until the lost slips are actually misused
  3. CClose the demat account immediately and transfer holdings to the Clearing Corporation
  4. DInform the issuer companies of the securities held to freeze their registers

Explanation

On being told that DIS slips are lost, the DP should record the loss, block the slip numbers so that instructions on them are not accepted, and issue a fresh booklet as per its procedure. Waiting for misuse exposes the BO to risk. Closing the account or involving issuers is not required.

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