InvestorQ : Is my DIS booklet like my Bank cheque book?
Bhavik Nehru made post

Is my DIS booklet like my Bank cheque book?

Answer
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Anjana Aiyar answered.
2 years ago


The answer is yes and no. There are some similarities and there are also some key differences. You must treat your DIS booklet like a bank chequebook and keep it in safe custody. Just like your chequebook has cheque numbers, the DIS booklet has a serial number and every broker has to provide you with a pre-numbered booklet. Don’t accept DIS booklets unless your BOID is stamped on it. Even if your broker suggests you leave pre-signed DIS instructions, avoid that to the extent possible. In fact, SEBI rules do not permit that. Like in case of bank account, you must ensure the digits and figures match, otherwise, you face rejection. In both cases, rejection of the instrument has a cost.


But there are also differences. Demat account only deals in securities, bank accounts only deal in funds. Demat account has nothing to do with funds. In fact, in the case of cash corporate actions like dividends and interest, the DP only instructs the registrar to directly credit the bank credit with an equivalent amount. In short, the DP account captures your flow of shares and securities while your bank account captures the flow of funds in and out of your bank account.