You receive payment from the broker for the sale of securities.

How can I purchase dematerialised securities?

For receiving demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later.

Alternatively, you may choose to give separate receipt instruction every time some securities are to be received. The transactions relating to purchase of securities are summarised below:

You should ensure that your broker transfers the securities from its clearing account to your depository account before the book closure. If the securities remain in the clearing account of the broker, the company will give corporate benefits (dividend or bonus) to the broker. In that case, you will have to collect the benefits from your broker.

What do you mean by `market trades' and `off market trades'?

Any trade settled through a clearing corporation is termed as a `market trade'. These trades are done through stock-brokers on a stock exchange. `Off market trade' is one that is settled directly between two parties without the involvement of clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.

If I sell securities through a sub-broker, which part of the delivery instruction slip should be filled?

If you are delivering securities to your sub-broker you would need to fill in the off-market trade portion of the delivery instruction slip.

What settlement details are required on the delivery instruction slip?

On every stock exchange various settlements are effected every day such as daily settlement, auction settlement etc. Each of these settlements is identified by a combination of a market type and a settlement number. You are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to your broker's account.

These settlement details are available on the contract note issued by the broker.

What is T+3 rolling settlement cycle and when delivery is to be given to a broker?

In case of T+3 rolling settlements, trades taking place on each trading day are required to be settled on the third day following the date of trade.

For example, trades of Monday will be settled on Thursday morning. In this example, if you have sold securities, you need to make sure that the securities reach the account of clearing member of the stock exchange latest by Wednesday.

In case of T+3 rolling settlement cycle if I am trading (selling) through a sub-broker when do I need to give delivery instruction to my DP?

In this case also the settlement deadlines will remain the same (i.e. Thursday morning for a Monday trade). However, there is an additional transfer involved. You will transfer securities to the sub-broker's account and the sub-broker will further transfer the securities to the account of clearing member. Therefore, in this case you should give delivery instructions to your DP immediately after confirmation of sale transaction.

How do I come to know about the settlement deadlines?

The depository participant with whom you have your demat account will prescribe the deadlines to be followed by you for submission of delivery instruction slips. You should deliver instructions to your DP as per these deadlines.

When I buy shares, at what time should I receive the securities from my broker?

The broker is expected to transfer the securities to you within two working days or four calendar days after securities are received in his pool account, provided you have made the requisite payment to the broker.

What precautions do I need to observe with respect to Delivery Instruction Slips (DIS)?

The following precautions are to be taken:

Please fill in target account ID and all details in the DIS yourself.

Source: www.nsdl.co.in

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