SEBI issues new rules regarding delivery instruction slips

India Infoline News Service | Mumbai |

A Delivery Instruction Slip (DIS) is used by sellers of securities to instruct their depository participant to debit their demat account

Capital market regulator SEBI (Securities and Exchange Board of India) has introduced a new framework to strengthen the supervisory and monitoring role of depositories and their participants for issuance and processing of Delivery Instruction Slips.

A Delivery Instruction Slip (DIS) is used by sellers of securities to instruct their depository participant to debit their demat account.

The market regulator said that 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.

Depositories shall ensure that the DIS is standardized across all DPs in terms of: a. Serial Numbering of Delivery Instruction Slips so as to enable system level checks by the depositories
b. Layout and size of DIS so as to facilitate scanning and easy retrievability of records, SEBI said in a circular on Tuesday.

The DIS must bear a pre-printed serial number, DP identity and pre-printed or pre-stamped beneficial owner identity.

The depositories shall prescribe a standard method of serial numbering and ensure that serial numbers issued by a DP are unique within the DP-ID.


DPs shall ensure that:
a. same DIS shall not be used for giving both market and off-market instructions.
b. a single DIS shall not be used for transactions with multiple execution dates.

Upon issuance of DIS booklets or loose slips to BO, the DPs shall make available immediately the following details of the DIS to the depository system electronically:
a. the DIS serial number,
b. BO ID,
c. date of issuance, and
d. any other relevant detail as decided by the depository.

At the time of execution of DIS, DPs shall enter the serial number of DIS in the depository system for validation. The depositories shall make provisions in their systems to facilitate the same.

In respect of all the transfer instructions on a DIS, Depositories shall validate the serial number of DIS and shall ensure that no instructions accompanied by a used DIS or unissued DIS are processed.

 

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