Sebi announces changes with respect to DIS Issuance and Processing

In order to safeguard the interest of the investors, Sebi has put in place 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 need 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.

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.

DPs shall not accept old DIS for execution from a Beneficial Owner (BO) who has been issued new DIS, it is clarified 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.

The Depositories are advised to:-

a) Bring the provisions of this circular to the notice of their DPs and also to disseminate the same on their website; and

b) Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision as may be applicable/ necessary;

c) Communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report.

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