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

Ms. Kavita Rao, a BO, wishes to give a delivery instruction slip (DIS) for an off-market transfer. Which statement about the DIS is correct as per standard DP practice?

The DP should verify the signatures of all account holders on the delivery instruction slip against the specimen signatures in its records before executing it. Seniority of the client does not waive this check, and no 30-day waiting period applies.

  1. AThe DP should verify the signatures of all BOs on the DIS against the specimen signatures held in its recordsCorrect
  2. BThe DP may accept the DIS without checking signatures if the BO is a long-standing client
  3. CThe DP must execute the DIS only after a 30-day waiting period
  4. DThe DP need not check whether the account has sufficient balance before executing

Explanation

Before processing a DIS, the DP verifies that the signatures match the specimen signatures on record, and that the account has sufficient free balance. Relaxing checks for long-standing clients is not permitted, and there is no mandatory 30-day wait.

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