eDIS (Electronic Delivery Instruction Slip)

The stock market’s terminologies and technicalities are like an ocean. You won’t be able to know all of them overnight. No matter whether you are a trader or investor, you have definitely come across the term eDIS. Electronic Delivery Transaction Slip, or eDIS, sounds a little bit complicated. Well, it’s not that, though. Here in this blog, we will be breaking it down in the easiest way. So stay with us until the end. 

What is eDIS? 

Before knowing what eDIS is, you need to know about two depository bodies related to the stock market. One is NSDL, or National Security Depository Limited, and the other is CDSL or Central Depository Services Limited. These two depository bodies allow investors to sell their stocks without submitting physical paperwork. Now, coming to the main part, eDIS is an electronic authorized system which SEBI mandated, and CDSL/NSDL implemented.

Previously, people used to fill out the physical delivery instructions (DIS slips) to sell any shares from their demat account 

The process was not only time-consuming, but also risky, as people used to fail at transactions. Today, with the help of eDIS, selling shares has become a matter of a few seconds in the digital mode. 

Reasons Why Electronic Delivery Instruction Slip Is Important: 

Accepting the technologies is always beneficial in many aspects. Similarly, when you start using eDIS, you will understand its importance.

1. No Power of Attorney (POA) Needed – There is no need to issue a Power of Attorney to your online broker. Using the eDIS facility, you can execute online sales transactions for the scrips held in your demat account.
2. Faster Trading – It delivers a smoother trading experience to the traders. With the help of eDIS, you can proceed with the sale almost instantly compared to the manual method. 
3. Ensuring transparency – To ensure transparency and protect the investors from interest, eDIS is aligned with the regulatory standards set by SEBI or the Security and Exchange Board of India. 
4. Reliable – No matter where you are currently or what you are doing, you can do the transaction with just a few clicks. 
5. Double Layer Security – When you sell any share in any digital platform, eDIS will ask for an OTP, and along with that they follow other security protocols. In terms of avoiding unauthorized debits, eDIS just adds an extra layer of digital verification. 

Steps to Use Electronic Delivery Instruction Slip for Trading 

Knowing the steps is an essential part, especially for the beginners. Below we will be mentioning it step by step to guide you thoroughly. 

Step 1 – Link Your Accounts

If you want to use eDIS, make sure your demat account is linked to your trading account. Generally, when you open a demat account, the broker does all the required formalities to link your account. 

Step 2 – Sell Share

At this stage, you have to initiate the process to sell your shares. First login to the platform from where you trade. Then confirm the price, and quantity and place the order to sell. 

Step 3 – eDIS Request 

After you place the order your broker platform will directly trigger an eDIS request. At this stage, you will likely get a notification including a link directing you to the depository’s portal such as CDSL or NSDL. 

Step 4 – Fill Up The Credential 

Once you reach the portal, time to fill up the credentials to log in, and using the OTP you will verify the transaction. Remember, you should receive the OTP on your registered email ID or mobile number. 

Step 5 – Completion 

After the verification is done, your shares will be debited from your demat account and the sale will be done. Usually, the entire payment should be there in your account within a few working days.

Common Issues With eDIS

We all know that Electronic Delivery Instruction Slip is one of the most user-friendly systems, but at the same time, a lot of traders and investors face trouble while proceeding with the steps. Here are some common issues we have noticed:

1. Technical glitches are common issues faced by many investors and traders. But clearing the browser cache and switching to another browser generally resolves the issue. But if the glitch still stays, try to contact the customer support of your broker. 
2. The authorization link gives you a time barrier. Try to complete the entire process quickly, otherwise, the season will expire. 
3. Always ensure that your contact details are registered and up-to-date. Otherwise, not receiving OTP is another very common problem. Sometimes, don’t speak, check the spam folders before contacting customer support. 
4. Beginners face trouble following the steps for eDIS. Additionally, the process might be a little different depending on which broker platform you are choosing.

Is eDIS Mandatory? 

For most retail investors without a Power of Attorney (POA) or Demat Debit and Pledge Instruction (DDPI), eDIS is required to sell shares. If you’ve given your broker POA or DDPI, you can skip it, as they can debit your account directly

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Wrapping Up 

Whether you are an experienced trader or just started the investment journey, understanding and knowing the uses of eDIS is a very essential part.  You will certainly feel the importance once you start selling your first share. The stock market is already a very uncertain area so if you welcome digital innovations like eDIS wholeheartedly then you will always stay up-to-date and ensure convenience. 

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Disclaimer – This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.