Delivery Instruction Slip (DIS) Issuance and Processing
Summary
This circular mandates the standardization of Delivery Instruction Slips (DIS) regarding serial numbering and layout to enhance investor safeguards. It establishes strict monitoring protocols requiring Depository Participants to electronically report DIS issuance and validate serial numbers during execution. The document outlines scanning requirements for executed DIS and sets a two-year phase-out period for non-compliant slips.
Text
it has been decided to strengthen the supervisory and monitoring role of the depositories and their participants with respect to issuance and processing of Delivery Instruction Slips (DIS).
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.
The DIS must bear a pre-printed serial number, DP ID, and a pre-printed/pre-stamped Beneficial Owner (BO) ID. 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.
DPs shall scan every DIS executed during a day along with all Annexures/ Computer printouts, if any, by the end of the next working day in the manner specified by the depository.
The depositories shall ensure that their DPs have adequate infrastructure, systems and processes to implement scanning, storage and transfer of the scanned DIS in the manner specified by the depositories.
The depositories shall ensure that the systems set up by the DPs maintain proper records of all scanned DIS images including audit trails for changes made, if any and put in place adequate checks and procedures to prevent unauthorized changes to scanned DIS.
Depositories shall utilize the archived scanned images for off-site inspection.
Provisions of this circular shall not be applicable for the instructions received from the clients by the DPs electronically in a manner approved by the Depository.
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Delivery Instruction Slip (DIS) Issuance and Processing. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.