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What is a Delivery Instruction Slip and what Happens if it gets Rejected

Regardless of whether you are an experienced trader or a newbie, one term that you must surely have across is Delivery Instruction Slip or DIS slip. When you are conducting a transaction from your trading and Demat account, this is one step that all traders encounter. You may have been confused about the Delivery Instruction Slip meaning and wondered, “what is a DIS slip?”. 

The reason for the importance of the delivery instruction slip is crucial for any investor to know. If you wish to make a sale of shares from your demat account or your trading account, you must have authorisation for the sale. This is done through a verified DIS, or delivery instruction slip. 

Read on to find out exactly what a delivery instruction slip is and what happens if it is rejected.

What is a delivery instruction slip in NSDL?

The DIS slip is essentially like a cheque but for your Demat account transactions. It is used to facilitate and authorise the sale or transfer of shares from one account to another. In order to conduct a transaction, you are required to submit a DIS slip to your Demat account provider or DP (depository participant). On completing this authorization step, the shares will be transferred from your personal account to the HUF Demat. 

Delivery instruction slips are given to demat account holders in the form of a DIS book in which several blank slips are included. The slip, as and when it is required, is removed from the booklet at the appropriate time and filled in. This signed document is specifically important for offline trading, as it permits the DP to carry out the transfer on your behalf. In online transactions, you can simply give your broker/intermediary the power of attorney (PoA) to conduct these transactions. The benefit of online trading, you do not have to worry about DIS rejection or submission

What are the elements of a DIS slip?

After you know the format of a delivery instruction slip, you will have a better understanding of the fields that have to be filled, and any potential errors that may take place, leading to the rejection of the slip.Since this is a slip that requires you to fill in details manually, there may be a chance of errors. You should note that, at the outset, your details as maintained in your records with your DP must match the details you fill in the slip. For instance, your signature must match and any slight error will lead to the rejection of the slip and your delivery trading activity will be null and void. 

The delivery instruction slip contains the space for the client ID, the name of the client, the date of execution of the transaction, the ISIN number and other details like the shares you want to be sold, the amount to be sold,  and their respective ISIN codes. In each DIS, it is possible to transfer 5 different ISINs to your broking account to be sold. 

What happens when the delivery instruction slip gets rejected?

The DIS could get rejected for the 6 reasons below:

1. The stock’s ISIN number may be wrong 

2. There may be a writing error in the number of shares

3. Market transactions and the off-market transactions may have been labelled as the other.

4. There may be a signature mismatch

5. There may not be enough shares in the seller’s Demat account

6. The DIS may be overwritten

In India, the markets are run on the T+2 rolling settlement bases. The trader has to submit the DIS slip to their broker prior to T+1’s first half. It is recommended that the DIS is submitted on the exact day the trade happens, so there is adequate time to catch the error and rectify it. In case you wish to see a delivery instruction slip sample, you can ask your brokerage or DP to show you a sample. By viewing it, you may be able to grasp how to fill it out with the utmost attention to detail. Typically, if there is any mismatch in the information that is registered with your DP and the details you have filled in the DIS, there will be a cause for rejection. For example, in case your name is filled out in the wrong way on the DIS, relative to that which is registered in your demat account, this is a reason for instant rejection. 

In case the errors are not resolved, traders may have to face short delivery. Short delivery means that the stocks are auctioned and sold off to the buyer who makes the highest bid. Thus, in the event that the DIS slip is rejected, you may face significant losses during the auction if the stock prices see a sharp increase in that period. Once you have the answer to the question “What is a delivery slip in the stock market?”, you can get to know its use and how you can fill it up in the right way. Depending on your DP, the DIS booklet may have certain instructions as to how to fill in your details on each slip.

How do I rectify DIS slip errors?

DIS slip rejection can easily be corrected in off-market transfers as there is no risk of an auction being triggered. Your DP can get in touch with you to fix the error. Your DP has all your contact details, and you may have to physically attend your DP’s premises to fill in and sign a new slip. Usually, if there are errors on a slip that lead to a rejection, you will have to fill in a fresh DIS and submit the same to your DP on the DP’s premises (your bank or any other demat office). 

However, in market trades, you may have to negotiate and make an appeal with your broker in order to try and manage the incurred debit. The best way to avoid DIS rejection is to double-check that the format is correct and submitted on time to your DP. In the event that an individual makes many errors in a delivery slip booklet, as this is the way that delivery slips are presented for use to any demat account holder, DIS charges will apply when you have to be provided with a new booklet containing delivery slips. The charges for the DIS booklet are standardized, and the initial booklet costs Rs. 100 plus 18%GST. The same will be charged for any additional slip booklet if it is required. 


The delivery instruction slip is a document that acts as an authorization document that helps facilitate and track Demat account transactions in the trading market. DIS slip rejection can lead to undesirable consequences and huge losses. Hence, it is vital that traders ensure the DIS is error-free and submitted in a timely manner in order to avoid rejection and carry out transfers efficiently. 

 If you are an active investor and wish to trade with ease and convenience, you must make sure that your information is filled out properly. There is no room for errors and if you wish to save time and effort, it is probably worth practicing how to fill a DIS in advance.


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