TRANSFER OF DP TO ANOTHER DP ACCOUNT "delivery instruction slip"

delivery instruction slip

Transfers and Transactions in a Demat Account through Delivery Instruction Slip (DIS): A demat account is equivalent to a bank account. Here, the securities are kept as balance in your account which can be later sold or transferred as per requirement. Transaction of Securities can be a On Market and Off Market. On market Transaction: Any transaction for sale and purchase of securities through a broker on the stock exchange to be settled through Clearing Corporation / Clearing House is generally termed as On Market transaction. Off Market Transaction: Off Market transaction is one which is settled directly between two Demat Account Holders without using the broker and where no Clearing Corporation / Clearing House is involved. Importance:    All demat transactions involve use of Delivery Instruction Slips (DIS). These are equivalent to Cheque Book and must be kept in safe custody. Process: Upon submission of DIS, the Depository Participant processes the DIS and debits the clients account with the said no of shares. Simultaneously, the target demat account is credited with the same number of shares. High-value transactions, where the value of the securities exceeds `5 Lac, will be verified by the depository participant to keep a check on fraudulent transfers. Precautions to be followed with DIS: Ensure and insist with DP to issue DIS book Ensure the client ID and serial numbers of the DIS are pre-printed If the account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed Avoid using loose slips Do not leave signed blank DIS with anyone viz., broker / sub-broker, DPs or any other person / entity Keep the DIS book under lock and key when not in use If only one entry is made in the DIS book, strike out remaining space to prevent misuse by any one Personally fill in target account-id and all details in the DIS For On-Market Trade: One needs to enter the CM BP Id (Broker ID), CM Name, Settlement No, Name of the security, ISIN (the unique number of each security present in the demat holding statement), and the number being sold. For Off-Market Trade: One needs to enter the name and ID of the Target Depository Participant and Target Client ID  along with Name of the security, ISIN and the number of shares being transferred. 9. If the DIS booklet is lost / stolen / not traceable, the same must be intimated to the DP immediately in writing. On receipt of such intimation, the DP will cancel the unused DIS of the said booklet 10. While submitting your DIS ensure to give the contact no on the DIS