As discussed above, Demat account transfer gets processed by two methods, online and offline.
In the case of offline Demat account transfer, the form is available at the broker’s office, and for online Demat account transfer, you can access the Demat account transfer form from CDSL’s website.
Demat Account Transfer Charges
When a trader decides to walk down the road to Demat account transfer, some brokers let you transfer with no charges. But some might charge you a small amount.
These charges vary from broker to broker.
Demat Account Transfer Money
Every stockbroker aims to facilitate their traders with eased trading practices and the fastened process of Demat account transfer money. There is a range of procedures that accelerate fund transfer.
From net banking to UPI & offline methods, every possible way to carry out the process of a money transfer gets extended to the traders.
Demat Account Transfer Physical Shares
The process of transferring your physical shares to a Demat account is known as Dematerialisation, and Demat is the short form of this term.
This process is easy to execute.
If you have a Demat Account already, you can skip this point. The first step towards dematerialization is opening a Demat Account with a broker you feel is right for you.
Next, you need to surrender your share certificates to the respective broker.
A dematerialization request form (DRF) is to be submitted along with the share certificates.
Wait for the shares to credit in your Demat account.
Congratulations! You just dematerialized your shares.
Demat Account Transfer Nominee
Demat accounts, as registered, are by default treated as the holder has opted out of the nomination process. In this case, the account holder has to download the form for adding a nominee or visit the DP office in person to add them.
Some brokers offer the option to add a nominee during the registration process.
Demat Account Transfer After Death
A Demat account can have a single holder or joint holders. In either case, if a holder dies, the Demat account transfer takes place according to the situation. The situations and respective procedures are listed below
Since the single account holder had registered a nominee, the process is simple.
Download the transmission from the website or visit the DP’s office.
Fill in the form and attach a notarized copy of the death certificate duly attested by a Gazetted Officer or a Notary Public.
The securities then get transferred to the nominee’s account of the DP.
When the sole holder of a Demat account dies with no registered nominee, the securities are transmitted to the legal heirs as determined by the competent court orders.
But, if the securities value less than ₹1 lakh, the transmission is processed after a duly filled transmission form along with an attested copy of the death certificate, letter of indemnity, and an affidavit in the prescribed format.
The requester must submit a NOC from all legal heirs who do not object to the transmission.
In case it is a jointly held Demat account, the holders need to follow these steps
The surviving Demat account holders have to fill a transmission form.
A duly attested copy of the death certificate has to be attached to the above-said form.
Next, they need to open a new DP Demat account to process the transmission request.
Note: The account holders’ names have to be in the same sequence as the account closed.
You might be a little skeptical in carrying out Demat account transfer, but rest assured, it is very safe. One major point to keep an eye on as you perform this is to talk about the charges involved with your broker.
Demat account transfer can get initiated for a variety of reasons. Be sure of your intentions, and you’re good to go.
Want to Open a Demat Account, please refer to the below form