What is a DIS Slip? A Simple Guide for Investors

Summary
A DIS Slip is a physical instruction document used to transfer securities from one demat account to another, especially for offline or off-market transfers.

The blog explains when investors may need a DIS Slip, what details must be filled carefully, and how the transfer process works through the depository participant.

It also covers common errors, safety tips, offline versus online transfer methods, and the possible charges and timelines involved.

What is a DIS Slip?

The Delivery Instruction Slip, or the DIS of a demat account, is a physical document that is similar to a cheque book. It provides the benefit of transferring shares between demat accounts, especially off-market. It offers authorised movement of securities. It ensures that the transfer is recorded and filed without any errors. Since DIS is similar to a bank cheque book, the process is also similar. So, any incorrect information can lead to failure of the transfer.  

When You Might Need a DIS Slip

DIS Slip is required when an investor wants to transfer their securities manually or offline. It will be needed for the following reasons:

• Primarily, an investor needs a DIS Slip when they want to transfer their shares from one demat account to another demat account of the same investor.

• DIS Slip is required when an investor wants to transfer shares to another person’s demat account. For example, friends, family, etc as gifts 

• DIS Slip is required when an investor wants to sell their securities, i.e., outside the exchange platform.

• Even for borrowing loans, DIS Slips can be used as collateral, which means that the investor will offer their investments as securities to the bank or broker, in order to get a loan or trading margin.

How the DIS Slip Process Works

The process of DIS Slip needs to be done carefully without any incorrect or mismatched information. It needs to be filled correctly in all the required spaces and then get verified by the depository participant, in order to complete the filling. Any mismatch might create an error or result in the failure of the process.

Key Details to Fill Carefully

In order to continue with the process of filing for the DIS Slip, one must keep in mind the key information required. The information is:

• 16-digit demat account number or Beneficiary Owner ID (BO ID), as applicable to the depository.
• International Securities Identification Number (ISIN), i.e., the unique 12-digit identification number belonging to the security that will be transferred.
• Security Name- the name of the transferable security.
• Quantity- the number of securities or shares, both in numbers and words.
• Target DP details- DP ID, Client ID
• Reason and mode of Transfer, i.e., the purpose behind the transfer and the mode by which it will be transferred, be it off-market or on-market.
• Date of execution with Correct Signature

Now, for the process of filling the transfer, the following steps should be taken carefully:

1. Obtain the DIS booklet.
2. Fill the slip carefully, i.e., the BO ID, ISIN, Depository Participant ID, Client ID, ETC.
3. Carefully fill in the details of the transferable securities i.e., the name of the securities, quantity of securities, both in number and word.
4. Then, specify the reason behind the transfer. For example, if securities are sold off the market, or gifted to friends or family, or transferred to another account of the investor.
5. As per requirements, the signature of the account holder or investor needs to be taken, and it should not mismatch with the already registered signature.
6. After the slip is filled, it is then submitted to the depository participant for further verification.
7. Once verified, securities or shares are transferred from the sender’s demat account to the recipient’s demat account.

How Do I Rectify DIS Slip Errors?

Mistakes are not inevitable. Sometimes, no matter how careful we are, we end up making mistakes. 

In case of DIS Slips, it is better not to make a mistake, but if made, it can be rectified. It is easier to rectify in off-market trade before it is processed by informing the Depository Participant. Once you identify the error, inform the Depository Participant, and they will provide necessary guidance or cancel the incorrect slip request. In case of on-market trades, brokers must be informed, and try adjusting the debit.

Offline vs Online methods

DIS Slip is a physical document, i.e., the offline method of transferring securities, suitable for off-market trade, whereas online DIS or eDIS/TPIN is a paperless digital process, ensuring quick and instant electronic transaction. 

It is quite obvious that Online DIS or eDIS is more convenient than manual DIS. The reasons are mentioned below:

• Offline DIS requires the physical presence of the booklet, either sent personally or through courier. Unlike online, DIS can be processed from anywhere through platforms like Central Depository Services (India) Limited CDSL and National Securities Depository Limited NSDL.
• Online methods are faster and are highly convenient compared to Offline methods, where the process requires manual presence.
• The risk of error is lower in online DIS as the signatures and information are automated. But in the case of offline DIS, information needs to be filled manually in physical paper, which automatically increases the risk of error along with the chances of rejection.
• Taking security into consideration, undoubtedly, online DIS is more secure as it requires multi-factor authorisation for accessing like OTP. Meanwhile, in offline DIS, only the physical booklet exists.

Cost and Timelines

DIS charges and processing timelines are not the same for every investor. They depend on the depository participant, broker tariff, type of transfer and whether the instruction is submitted physically or online.

Some brokers may issue the first DIS booklet with a limited number of slips free of cost. Additional booklets may attract booklet and courier charges. Transfer charges may also apply per security, per transaction, or as per the DP’s tariff structure.

For example, Zerodha states that transfer charges are ₹25 per security, per transaction plus 18% GST. Groww mentions first 10 DIS leaves free, an additional 10 leaves at ₹100 plus courier charges, and inter-settlement charges made up of depository charges plus Groww charges and GST. CDSL’s own tariff shows a ₹3.50 flat debit transaction charge levied to DPs, not necessarily the final amount charged to investors. 

Offline DIS transfers usually take a few working days, provided all details are correct and the account has sufficient securities and funds for applicable charges. Online options such as CDSL easiest, eDIS or NSDL SPEED-e may be faster where available.

Common Mistakes and  Safety Tips

The common mistakes made by investors, especially during DIS filling are:

1. Mismatched signatures is a very common mistake made by investors quite often.

2. Incorrect details and incomplete slip is also other mistakes made by investors, which can be easily handled by seeking help from the authorities.

3. Overwriting or Tampered slip form is also responsible for transfer rejection.

4. Not having sufficient balance during transfer is also not appreciated in DIS slip form.

Conclusion

DIS Slip is a useful document that makes the process of share or securities transfer easier for investors. One must keep in mind the key information required for filing of DIS Slips, and carefully specify it in the form. Errors make the transfer a rough ride, as it includes penalties and extra charges for each transfer that fails. Due to the encouraging digitalisation of services, even DIS Slips have online platforms like CDSL, NSDL, etc i.e., eDIS slips, making it even more convenient and safe for the investors.

FAQ‘s