New norms on delivery instruction slips from Oct: SEBI

According to the earlier plan, the new rules were to take effect from July 7.

July 07, 2014 4:28 IST | India Infoline News Service
The Securities and Exchange Board of India (SEBI) on Friday said its new framework to strengthen the supervisory and monitoring role of depositories and their participants for issuance and processing of Delivery Instruction Slips will come into force from October.

According to the earlier plan, the new rules were to take effect from July 7.

A DIS is used by sellers of securities to instruct their depository participants to debit their demat account.

SEBI said: "In light of the difficulties expressed by the depositories and the depository participants (DPs) and considering their request, it has been decided to make the circular effective from October 01, 2014.

Further, SEBI said that a period of one month may be given for receipt of DIS by the Beneficial Owners (BO).

"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," regulator added.

According to new guidelines, depositories needs to ensure that the DIS is standardised across all depository participants in terms of serial number and layout and size of DIS to facilitate scanning and easy retrievability of records. The depositories would have to prescribe a standard method of serial number and ensure that these numbers are unique.

Also, DPs need to ensure that same DIS will not be used for giving both market and off-market instruction. Besides, a single DIS will not be used for transactions with multiple execution dates.

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