CIRCULAR No. CIR/MRD/DP/ 22 /2014  – Dated-July 04, 2014

Subject: Delivery Instruction Slip (DIS) Issuance and Processing

1. SEBI has vide circular no. CIR/MRD/DP/ 01 /2014 dated January 07, 2014 introduced guidelines to strengthen the supervisory and monitoring role of the depositories and their participants with respect to issuance and processing of Delivery Instruction Slips.

2. 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.

3. Further, with regard to the provision under para 14 that 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.

4. The depositories shall ensure the implementation of the  above within the stipulated timelines. Other provisions of the circular would remain unchanged.

5. 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.

6. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Maninder Cheema

Deputy General Manager

maninderc@sebi.gov.in

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