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

Ms. Kavita Rao, a BO, loses her unused Delivery Instruction Slip (DIS) booklet pages. What is the most appropriate action for her to take?

She should immediately inform her DP in writing about the lost slips. The DP can then block those slip numbers and refuse to execute instructions on them, protecting her securities from misuse. The issuer company is not involved in DIS handling.

  1. AWait until the DP notices the missing slips
  2. BInform the DP in writing immediately so the unused slips can be blockedCorrect
  3. CClose the demat account and open a new one only after a year
  4. DInform the issuer company about the lost slips

Explanation

A lost or stolen DIS can be misused to transfer securities. The BO should promptly notify the DP in writing so that the DP can stop the slip numbers and not execute instructions on them. The issuer company has no role in DIS, and closing the account is not required.

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