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

Which of the following is the main purpose of a Delivery Instruction Slip (DIS) issued to a beneficial owner by a DP?

A DIS is used by the beneficial owner to instruct the DP to debit securities from the demat account and transfer them as specified, such as for market or off-market delivery. It is not an account opening or nomination form.

  1. ATo open a new demat account
  2. BTo instruct the DP to debit securities from the account and transfer them as specifiedCorrect
  3. CTo apply for a nomination
  4. DTo record the dividend bank details

Explanation

A DIS is the instruction form through which the BO authorises the DP to debit securities from the account and deliver them for market, off-market, inter-depository or pledge purposes. It is not used for account opening, nomination or recording dividend details, which have separate forms.

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