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

Mr. Iyer holds shares in his demat account and wants to transfer them to his brother's demat account at another DP, with no change in beneficial ownership terms other than the transfer itself. Which instruction form does he submit to his DP for an off-market transfer?

The client submits a Delivery Instruction Slip (DIS) to the DP. Any debit of securities from a beneficial owner account, including an off-market transfer to another account, must be instructed through a signed DIS, whereas the other forms serve account opening, pledge or rematerialisation.

  1. ADelivery Instruction Slip (DIS)Correct
  2. BAccount Opening Form
  3. CPledge Creation Form
  4. DRemat Request Form

Explanation

Debits of securities from a BO account, including off-market transfers, require a signed Delivery Instruction Slip. The account opening form is used only to open the account. The pledge form creates a pledge, not a transfer, and the remat form converts holdings to physical form.

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