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

Mr. Raman Iyer, a BO, wants to transfer 500 shares of a listed company from his demat account to his friend's demat account in another depository participant outside the stock exchange trade, without any sale consideration through the exchange. Which instruction type does he normally submit to his DP for this?

The BO submits a delivery instruction slip (DIS) to the DP for an off-market transfer. The DIS is the authorised instruction for debiting securities from the account. Demat, pledge and nomination forms serve different purposes and do not transfer holdings to another BO account.

  1. AA delivery instruction slip (DIS) for an off-market transferCorrect
  2. BA dematerialisation request form
  3. CA pledge creation request
  4. DA nomination variation form

Explanation

Transfers of securities from one BO account to another outside the exchange settlement are called off-market transfers and are executed on the BO's signed delivery instruction slip. A demat request converts physical certificates, pledge creates a lien, and nomination only names a successor, so none of these moves securities.

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