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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Debt Instruments and Government Securities

Mr. Kapoor holds a corporate bond in his demat account and wants to transfer it to another investor off-market. At a minimum, which instruction detail is essential for the DP to process this delivery?

An off-market transfer of a debt security requires a signed delivery instruction giving the receiving party's DP ID and client ID, the ISIN of the security and the quantity. Without the counterparty account details, the DP cannot execute the transfer.

  1. AOnly the ISIN and quantity, with no counterparty details
  2. BCounterparty DP ID and client ID, ISIN and quantity, in a signed delivery instructionCorrect
  3. COnly the broker's trading code
  4. DThe issuer's board resolution

Explanation

An off-market transfer requires a properly authorised delivery instruction identifying the receiving account (DP ID and client ID), the security (ISIN) and the quantity. Without the counterparty account, the DP cannot credit the receiver. A trading code or board resolution is not needed.

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