InvestorQ : Do I need to authorize debits and credits to my DP account?
Priyanka Jain made post

Do I need to authorize debits and credits to my DP account?

Answer
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sara Kunju answered.
2 years ago


You are aware that you cannot debit shares to your account without a debit instruction slip (DIS), which has to be signed by you with the ISIN numbers as well as the number of shares sold. Only then the sale of shares will be processed by the DP. What about when you purchase shares? That is where the concept of Standing Instruction given in the account opening form comes in handy.
In a bank account, credit to the account is given only when a 'pay in' slip is submitted together with cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in the account. However, for the convenience of BOs, facility of 'standing instruction' is given. If you say 'Yes' for standing instruction, you need not to submit 'Receipt In' slip every time you buy securities. If you are particular that securities can be credited to your account only with your consent, then do not say 'yes' [or tick ] to standing instruction in the application form. The double checks and balances have been kept for debits because that is what investors have to be protected from. You can also fill the form appropriately if you want all credits to your DP account also to be authorized. In case you have already given a standing instruction, you can write to you DP to change and make it a consent driven credit only.