What is Delivery Instruction Slip (DIS), and what is it used for?

A Delivery Instruction Slip is like a form that an investor needs to fill out for the offline transfer of shares from one demat account to another demat account. These are called slips because when an investor opens a trading and demat account, they will get a DIS booklet from their broker that contains these blank forms.

The DIS booklet looks like a cheque book, but only bigger, containing multiple slips. But, instead of transferring money, they are used to transfer shares. The DIS should be filled by seller, as they are the one who is requesting debit of shares from their account, and then submitted to the broker to execute the transfer from the account. See, How to fill Delivery Instruction Slip (DIS)?

WHERE DIS IS USED?

Nowadays, trades and settlements have largely moved to digital format, the DIS is slowly losing its importance of it. But, here are some cases where DIS 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 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.