DIS is similar to a cheque book of a bank account. It is an instruction given by the Demat account holder(s) to his / her DP to transfer share (or other kinds of securities) from his / her account to some other specified Demat account. It is important for a Demat account holder to note the following points while using a DIS:
- Ensure that the DIS book issued by a DP is pre-printed and serially-numbered.
- All slips must contain the correct DP ID, DP Name and Client ID.
- Keep DIS book in safe custody just like a cheque book.
- In case a slip or a DIS book is misplaced or lost, the DP should be notified at the earliest to avoid misuse or fraudulent transactions.
- All instruction slips should be properly filled and signed by all the joint account holders before submitting it to DP.
In addition to physical DIS, Demat account holders can submit instructions in the electronic form to DP using NSDL.
