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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Trading and Settlement

Under the eDIS facility for selling shares, which of the following is correct?

With eDIS the client authenticates the specific sale quantity through a TPIN and an OTP generated by the depository. This limits the debit to the approved shares and avoids handing blank slips or unrestricted authority to the broker.

  1. AThe client authorises the debit using a depository-generated TPIN and OTP, up to the quantity soldCorrect
  2. BThe client must hand over a signed blank delivery instruction slip to the broker
  3. CThe broker may debit any quantity from the demat account without client verification
  4. DThe DP credits the shares to the broker's own proprietary account

Explanation

In eDIS the client authorises the transfer of the specific shares sold using TPIN and OTP generated by the depository, so the debit is limited to what the client approved. Signed blank slips and unrestricted debits are not part of the facility, and transfer to the broker's proprietary account is not the purpose.

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