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

Mrs. Iyer submitted a delivery instruction slip (DIS) to her DP. 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 held in its records, along with the other details such as ISIN and quantity. No countersignature, exchange confirmation or issuer approval is needed for a standard transfer.

  1. AVerify the signatures on the DIS against the specimen signatures held in the account recordsCorrect
  2. BAsk the receiving BO to countersign the slip
  3. CWait for the stock exchange to confirm the instruction
  4. DObtain approval from the issuer company for the transfer

Explanation

Before processing a DIS, the DP checks that it is a genuine instruction by verifying the BO's signature with the specimen on record, along with details like the ISIN and quantity. Receiving BO countersignature, exchange confirmation and issuer approval are not required for a standard off-market debit instruction.

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