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

Mr. Iyer, a BO, wants to transfer 500 shares from his demat account to a friend's demat account at the same depository as an off-market transaction. Which document must he generally submit to his DP?

He must submit a signed Delivery Instruction Slip to his DP. A debit to a BO account requires the account holder's valid instruction, which is given through the DIS or an electronic equivalent. Other documents like a PAN copy or account opening form do not authorise a transfer.

  1. AA Delivery Instruction Slip (DIS) duly signed by the account holder(s)Correct
  2. BA copy of his PAN card only
  3. CA fresh account opening form
  4. DA share certificate in physical form

Explanation

Debits from a BO account are made only on a valid instruction from the account holder, given through a Delivery Instruction Slip or its electronic equivalent. A PAN copy alone is not an instruction, and an account opening form relates to opening the account. Share certificates are not used because the shares are already dematerialised.

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