On December 26, 2020, the NSDL issued a circular (NSDL/POLICY/2020/0163) regarding the amendments to the business rule 12.3.1 of the depository in the context of OTPs for off-market transfers.
The business rule in question states that the transfer of securities in respect of off market trades needs to be effected only upon the receipt of a duly filled in securities transfer instruction form from the client. This is applicable for delivery as well as for a securities transfer instruction form from the client for such a receipt. Such forms have been laid out in forms 12 and 14. Alternatively, a client is also allowed to give standing instructions to their DP(s) to credit the account.
In case of a joint account, any one of the account holders is allowed to provide the required consent via OTP.