Receipt Instruction
Also written RI · Receipt Instruction (RI)
The form a transferee submits to its own DP to accept one specific incoming credit into its demat account, needed only when no blanket Standing Instruction is already on file.
In plain language
A transfer moves securities two ways: out of one account, into another. The DP already needs a signed instruction from whoever is sending securities out — the Delivery Instruction Slip. The receiving side has a choice of its own.
A transferee can give the DP one blanket Standing Instruction at account opening, accepting every future credit automatically. Without that standing instruction on file, she has to fill in a fresh Receipt Instruction (RI) every single time she expects to receive securities.
How it works
From Chapter 8, section 8.1/8.2: if Standing Instructions were given to the DP at account opening, the transferee receives securities automatically. If SI was not given, the transferee "has to submit duly filled in 'Receipt-Instruction' (RI) form for every expected receipt." CDSL identifies the same underlying SI facility as a "Purchase waiver" or "Confirmation waiver."
This sits inside the same off-market settlement flow that generates an instruction ID for the transferor's Delivery Instruction: the transferor's DIS carries the debit side, and the transferee's RI (or standing SI) authorises the credit side of the very same transfer.
A worked example
Mr Naik has never given his DP a Standing Instruction. His uncle wants to gift him 250 shares worth Rs 1,87,500 (at Rs 750 each) off-market.
Because there is no SI on Mr Naik's account, he must separately fill and submit a Receipt Instruction to his own DP for these 250 shares before the credit can post — even though his uncle has already filed a complete Delivery Instruction Slip on the sending side. Had Mr Naik instead given a Standing Instruction back when he opened the account, the 250 shares would simply have landed in his account, with no separate form needed from him at all.
Why NISM asks about it
Chapter 8, section 8.1, introduces the Receipt Instruction directly opposite the Delivery Instruction Slip and the Standing Instruction. Expect a question on when an RI is actually needed — only in the absence of an SI — and on which side of a transfer (sending or receiving) each form belongs to.
Common exam traps
- An RI is needed only when no Standing Instruction is on file. It is per-transaction; an SI is a one-time blanket authorisation.
- An RI belongs to the receiving side of a transfer; a DIS belongs to the sending side — do not confuse the two forms.
- CDSL's name for the SI facility is a "Purchase waiver" or "Confirmation waiver" — not a separate mechanism from the SI itself.
Check yourself
1.A beneficiary account can be debited only if the beneficial owner has given which of the following?
- a)A standing instruction at the time of account opening
- b)A Delivery Instruction in the prescribed form (DIS)
- c)A verbal confirmation to the DP over the telephone
- d)A Receipt Instruction form
Show the answer
Answer: (b) A Delivery Instruction in the prescribed form (DIS)
A beneficiary account can be debited only if the beneficial owner has given a Delivery Instruction (DI) in the prescribed form, i.e., the Delivery Instruction Slip (DIS).
Option A confuses the two directions. A standing instruction only lets securities be received automatically — it never authorises a debit.
Option D is the receiving side too: a Receipt Instruction is what a transferee submits when he has not given a standing instruction.
Option C is never sufficient. The form must be complete in all respects and signed by all the holders, authorised signatories and POA holders of the account.
2.What is the deadline time for DPs to verify and release inter-depository transfer delivery and receipt instructions?
- a)5.00 p.m. on weekdays and 1.00 p.m. on Saturdays
- b)9.30 p.m. on weekdays and 2.30 p.m. on Saturdays
- c)3.00 p.m. on all days
- d)6.00 p.m. on weekdays, with no Saturday processing
Show the answer
Answer: (b) 9.30 p.m. on weekdays and 2.30 p.m. on Saturdays
The deadline time for DPs to verify and release Inter Depository Transfer delivery/receipt instructions is 9.30 p.m. on weekdays and 2.30 p.m. on Saturdays.
Option D is wrong on a point worth remembering separately: inter-depository transfers are processed on Saturdays, just with an earlier cut-off.
Do not confuse this with the client-level settlement instruction deadlines of 4 p.m. physical and 6 p.m. electronic on T+1, which govern a completely different instruction.
3.A transferee gives his DP a Standing Instruction (SI) so that securities are received into his account without a separate instruction each time. In CDSL, this SI is also identified as:
- a)A "Delivery waiver" or "Debit waiver"
- b)A "Receipt Instruction" (RI)
- c)A "Purchase waiver" or "Confirmation waiver"
- d)An "Early pay-in authorisation"
Show the answer
Answer: (c) A "Purchase waiver" or "Confirmation waiver"
The workbook's footnote is exact: "SI" is also identified as "Purchase waiver" or "Confirmation waiver" in CDSL.
The SI works only on the receiving side: the transferee can give Standing Instructions to its DP for securities to be received. If SI is not given, the transferee has to give separate receipt instructions each time securities have to be received.
Why the others are wrong:
- Delivery / debit waiver (A) — there is no such thing. A debit always needs a Delivery Instruction in the prescribed form (DIS).
- Receipt Instruction (B) — this is the alternative to an SI, not another name for it. It is filed for every expected receipt when no SI exists.
- Early pay-in (D) — a market-settlement facility for margin exemption, unrelated to receiving securities.
Where this is taught
Free preparation for NISM Series VIRelated terms
- Delivery Instruction SlipThe signed form on which a beneficial owner instructs the DP to debit the demat account — no beneficiary account can be debited without one, whether the transfer is on-market or off-market.
- Standing instructionA one-time authority, usually given at account opening, for the DP to credit securities into the account without a fresh instruction each time — the alternative is a Receipt Instruction for every single receipt.
- Instruction IDThe unique number the DP system generates for each off-market delivery instruction it enters, which the DP writes on the instruction slip for future reference.
- Off-market transactionA transfer of securities between two demat accounts on terms agreed between the parties, settled directly through the depository without a clearing member or clearing corporation.