DIS booklet issue norms eased

Written by Markets Bureau | Mumbai, Feb 28 | Updated: Feb 29 2008, 05:14am hrs
The Securities and Exchange Board of India (Sebi) has withdrawn the restictions on issue of not more than 20 slips per depository instruction slip (DIS) booklet and isuance of subsequent booklet to a beneficiary owner (BO).

Earlier, Sebi had restircted not only the size of the booklet but also its subsequent issue if only five DIS is left in the booklet. These restictions were imposed by Sebi last year through its circular issued on February 13, 2007.

Now, the size of the DIS booklet can vary as per the requirement of the investors.

Earlier, Sebi had set 20 DIS per booklet for retail invesors and 100 DIS per booklet for institutional investors.

The Sebi decision follows strong representation made by investors associations at its recent meeting.

Sebi was told that it becomes difficult for the investors to wait for the new DIS booklet when he wants to sell or buy in the market, particularly when the markets are volatile.

If there are sufficient leaves at their disposal, it could help them to enter or exit the stocks at the right time and at the right price.