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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Mr. Raghavan, a beneficial owner, wants to give his Delivery Instruction Slip (DIS) booklet details to a DP for safekeeping because he is travelling. Which advice from the DP is most appropriate under the usual investor-service guidance?

The investor should keep the DIS booklet safe with himself and never give signed blank slips to anyone, because a signed blank slip can be used to transfer securities from his demat account without his knowledge.

  1. AAdvise him to keep the DIS booklet in safe custody himself and never hand over signed blank slips to anyoneCorrect
  2. BAdvise him to sign all slips in advance and leave them with the broker's office
  3. CAdvise him to hand over the booklet to the DP's marketing staff so that transfers are faster
  4. DAdvise him to photocopy signed slips and circulate them to the broker

Explanation

A signed blank DIS can be misused to transfer securities. The investor should keep the booklet safely and not give signed blank slips to others. The other options expose the account to unauthorised debits.

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