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

Ms. Rao, a BO, has lost her unused Delivery Instruction Slip booklet. What is the most appropriate step for her to take?

She should promptly inform her DP in writing about the lost slips. The DP will then stop or block those slip numbers so they cannot be processed, and can issue a fresh booklet. Delay or informing only an exchange leaves the account exposed to misuse.

  1. AWait until someone misuses a slip and then inform the DP
  2. BInform the DP in writing immediately so that the lost slips can be blocked and a new booklet issuedCorrect
  3. CInform only the stock exchange where she trades
  4. DClose the demat account automatically without informing the DP

Explanation

A BO must immediately notify the DP in writing about lost or stolen DIS. The DP then marks the slip numbers as stopped so that no instruction on them is processed. Informing an exchange does not stop DIS at the DP, and waiting for misuse exposes the account to risk.

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