Sebi scraps limits on issue of DIS booklets

In a move to address investor concerns on the transfer of securities in the dematerialised mode, the Securities and Exchange Board of India (Sebi) has decided to scrap limits on the issue of delivery instruction slip (DIS) booklets after investor associations made representations to the regulator about the problems faced by them because of this provision.

Sebi had come out with a circular in February 2007 stating that depository participants (DPs) shall issue only one DIS booklet containing not more than 20 slips for individual account holders and not more than 100 slips for non-individual account holders, at a time.

The DPs could issue subsequent DIS booklet to a beneficial owner (BO) only after the BO has used not less than 75 per cent of the slips contained in the previous booklet.

This was after investor associations raised concerns arising out of transfer of securities from the Beneficial Owner (BO) Accounts without proper authorization by the concerned investor have.

"The DP shall also ensure that a new DIS booklet is issued only on the strength of the DIS instruction request slip (contained in the previous booklet) duly complete in all respects, unless the request for fresh booklet is due to loss, etc.", the circular had said. The delivery instruction after securities are bought or sold is given to the DP on the DIS.

The recent Sebi circular has asked both NSDL and CDSL to make amendments to the relevant by-laws, rules and regulations for the implementation of this decision.