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Considering the difficulties expressed by depositories and depository participants (DPs) on standardisation of delivery instruction slips (DIS), SEBI has extended the timeline for standardising DIS to October 1, from July 7.
A DIS is to a demat account what a cheque is to a bank account.
It is used to transfer shares to a buyer’s demat account when a beneficial owner (BO) sells shares on a stock exchange platform or transfers shares to another demat account through off-market route.
SEBI further clarified with respect to its January circular stating that DPs shall not accept old DIS for execution from a BO who had been issued new DIS.
The regulator said that a period of one month may be given for receipt of DIS by the BOs. The DPs may accept old DIS during this transit period. Further, while issuing new DIS, the DPs shall intimate the BO that old DIS cannot be used after the new DIS is received.
SEBI had directed depositories that a DIS must have a pre-printed serial number, DP ID and a pre-printed/pre-stamped BO ID. Depositories have to prescribe a standard method of serial numbering and ensure that serial numbers issued by a DP are unique within the DP ID.
DPs have to ensure that the same DIS is not used for giving both market and off-market instructions and a single DIS is not used for transactions with multiple execution dates.
DPs have to electronically upload the details of DIS booklets/ loose slips that have been issued to a BO besides providing the BO ID and the date of issuance.
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