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

Mr. Sharma submits a delivery instruction slip (DIS) to his DP for an off-market transfer. Which of the following is the DP's correct step before executing the instruction?

The DP must verify the signatures on the delivery instruction slip against the specimen signatures on record, confirm the slip belongs to the BO's issued booklet, and check that free balance is sufficient. Counter-signature by the receiver or issuer approval is not needed for a normal transfer.

  1. AVerify the signatures on the DIS against the specimen signatures held in records and check that the DIS is from the BO's issued booklet and has sufficient balanceCorrect
  2. BExecute it immediately because the DIS is stamped with the client code
  3. CAsk the receiving BO to countersign the DIS
  4. DObtain approval from the issuer company before executing

Explanation

Before processing, the DP must verify the DIS is genuine (issued to that BO), the signatures match the specimen, the instruction is complete and the account has free balance. The receiving BO's counter-signature or the issuer's approval is not required for an ordinary transfer.

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