Delivery Instruction Slip (DIS)
What are Delivery Instruction Slips and how to use the DIS for transfer of shares?
The Delivery Instruction Slip (DIS) is a form that investors need to fill for the offline transfer of shares from one Demat account to another. These are called slips because, when investors open a trading account, they will get a DIS booklet that contains these blank forms.
The booklet appears like a cheque book for the Demat Account containing multiple slips. Instead of transferring money, they are used to transfer securities. The slip has to be filled and detached from the booklet and then submitted to your stock broker to execute the transfer from the account.
The slips have to be filled by the seller as they are requesting the debit from their account. It can be used for transfer of all types of securities like Stocks, Bonds, ReITs, InvITs, ETFs etc.
Scenarios where DIS is useful
Now that the trades and settlement have largely moved to digital format, the DIS is slowly losing the importance it once had in the life of an investor.
Here are some cases where these slips can still be used:
- Off-market sale of securities between 2 parties
- Gifting of securities to family members
- Transfer of securities to yourself in case you have multiple Demat accounts
- To participate in Corporate Actions of companies like Buybacks, Open offers etc.
- Pledging of the securities to your broker or banks for a loan
- Transfer of securities to your Stock Broker in case of incorrect credit/debit/settlement
- Surrendering the shares when the company is being Delisted
- ESOPs and transfer of shares of startups to employees
- When the client does not wish to provide a Power of Attorney or Demat Debit and Pledge Instruction (DDPI) to the Broker
Etc.
How to fill a DIS?
The delivery slips have to be handled and filled with care as these are very important for offline transfer and sale of securities. Just like a cheque could be misused, these slips are susceptible to fraud and forgery as well.
Before an investor can transfer the shares to another Demat Account, he/she would need to map the destination account to their own account. This beneficiary can be added by submitting a physical form to the Depository Participant (DP) or by adding the beneficiary through Easi/Easiest account (in CDSL).
(For CDSL accounts, refer: How to update trusted BO accounts in CDSL’s Easiest)
Each broker has their own format and design of these slips, but all the slips will have at least these data elements to be filled by the investor:
| S. No | Data element | Description |
|
1 |
Date |
To enter the date on which the form has been filled |
|
2 |
DP ID and Client ID |
To fill the BO ID of the investor. This is the account from which the shares will be debited |
|
3 |
Name |
Name of the seller from whose account the shares have to be debited. (As it appears in the Demat account) |
|
4 |
The ISINs of all the securities you wish to transfer. This can be found in your account statement / holding statement or the company website. In case you want to transfer more than 5 different ISINs using the same DIS, you would need to attach a separate sheet/annexure with the complete list. |
|
|
5 |
Security name |
The name of the security you wish to transfer |
|
6 |
Quantity |
The number of units of the security you wish to transfer |
|
7 |
Reason for transfer |
This has to be selected carefully as the seller will have to pay Stamp Duty for off-market sale of securities where they receive a payment. Some common reasons that investors might find in the slip are:
|
|
8 |
Payment details |
If the investor has done a sale and received a compensation, then details of the sale amount and the payment received has to be mentioned . (This section can be skipped in case of a gift or any other reason where no money is received) |
|
9 |
Counter party name |
Name of the person to whom the transfer is being made |
|
10 |
Counter DP ID |
This is the Depository Participant (DP ID) of the person to whom you are transferring the securities. There might be different sections depending on your depository and the counter depository. Example: If you have a Demat account in CDSL, and the beneficiary has a Demat account in CDSL as well, then this will be an intra-depository transfer. Similarly, transfer from CDSL to NSDL counts as an inter-depository transfer. |
|
11 |
Counter client ID (Beneficiary BO ID) |
This is the client ID of the person to whom you are transferring the securities. There might be different sections depending on your depository and the counter depository. Example: If you have a Demat account in NSDL, and the beneficiary has a Demat in NSDL as well, then this will be an intra-depository transfer. Similarly, transfer from NSDL to CDSL is an inter-depository transfer. Make sure to fill the details of the beneficiary in the correct column. |
|
12 |
Execution date |
The date on which you want the transfer to be executed. It can also be used to schedule the transaction for a fixed future date. |
|
13 |
Signature |
Your signature to authorize the transaction. |
If there is any problem in your filled slip, it can be rejected by the Broker. Some common reasons for a rejection are:
Signature mismatch; Incorrect ISIN or Stock is not present in Demat account; Incorrect dates; Overwriting or scribbling etc.
Alternatives to the Instruction slips
With the push from SEBI towards digital transactions, the transfers through Delivery Instruction Slips are losing its significance. Many stock brokers these days, do not even issue a DIS booklet when they open a Trading Account. Or they charge a fees to give this booklet. Investors have to specially request their broker for a booklet in such a case.
Some stock brokers have also started the concept of electronic DIS (e DIS) where investors can submit transfer requests online to their broker. These online transactions are authenticated through OTPs sent by the Depository.
Moreover, the depositories have also started providing online services for transfer of securities directly from the Demat account. Whatever can be done using a DIS slip, can now be achieved through online transfer from the CDSL or NSDL website as well.
For the sale of securities, refer: Step by step guide for off-market sale of shares using CDSL
For gifting shares and transfer to self, refer: Step by step guide to gift stocks to relatives using CDSL
Disclaimer
- This page is for education purpose only
- Some information could be outdated / inaccurate
- Investors should always consult with certified advisors and experts before taking final decision
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