How to Transfer Shares from one Demat account to Another is one of the most intriguing questions one may have if he or she is looking to transfer his/her shares.
Many individuals prefer holding shares in the electronic form, as opposed to the paper form. Holding shares in an electronic form, through a dematerialization account, offers a high degree of flexibility and convenience.
It eliminates various risks associated with physical certificates, such as theft, fake certificates, and bad delivery, besides others. Another major benefit of holding shares in a dematerialization account is the ability to transfer the shares from one account to another quite easily.
Non-Resident Indians (NRIs) holding an NRI Demat Account too may transfer their shares to another account holder. Some online trading platforms provide the benefit of transferring shares from NRI DP accounts in a simplified manner.
These transfers may happen from one demat account to another in a couple of ways.
And honestly, the process is not that difficult, however, if your existing broker support team is relatively lazy, then yea, it could be a problem!
Let’s discuss how it can be done.
Transfer Shares from one Demat account to Another
Since you are looking to transfer shares from your current stockbroker (or DP) to another, it is most likely that either:
You have had pretty nasty experiences with your stock broker, or
99% of cases are most likely to fall in one of the reasons above. If your reason does not fall in the above ones, please let us know in the comments below.
Coming back to the topic, how can you transfer shares from one Demat account to another. Well, there are two ways to do it – Manually and Online. that allows you to Demat Account Transfer Shares.
Let’s discuss both one by one:
Transfer Shares Manually
When you open a demat account with a stockbroker, you are provided with a Delivery Instruction Slip or DIS as part of the welcome kit. Here is how it looks:
Some of the important fields you need to take care of are:
Target Client Id – This is a 16 digit identification number allocated to you.
ISIN – ISIN abbreviates for International Securities Identification Number and is a 12 digit code that assists in identifying securities such as stocks, equities, notes, bonds, debt, funds, and more. Here you have to mention to individual shares with quantities and other details.
DP Name – Name of the stockbroker
Inter Depository – this will be required to be filled in, in case you are transferring shares to some other depository
Off Market – this will be required to be filled in, in case you are transferring shares within the depository
Once you are done with filling the DIS slip, these are the next steps forward:
Submit this signed DIS slip to the current broker
Take the due acknowledgment slip of the filled DIS slip
Your broker will take 1-2 business days to transfer these shares to your Demat account with the target stockbroker.
Things to consider
Some charges may be applied by your current stock broker for this procedure. Actual charges vary from one broker to another.
If you are closing the demat account with the current broker, this process is free of cost and by law, the stockbroker cannot charge you anything for this transfer.
If you are closing the demat account, you are supposed to return the unused DIS slips back to the broker
Transfer Shares Online
This can be done using the EASIEST by CDSL. It makes the transfer to shares as simple as transferring money from one bank account to another.
All you have to do is register on this web tool by visiting the CDSL website and registering yourself and then submitting the form to the DP. Once verified by DP, you can do all the future transfers on your own.
Here are steps explained briefly:
Register on the CDSL website by clicking on the ‘Register Online’ link
Select the facility as ‘Easiest’
Provide your details
Take the print of the form and submit to your DP
Once verified, you will get a password to your email
Once logged in, you can start transferring shares on your own
All you have to make sure that the stockbrokers you are transferring your shares from and to, offer a CDSL Demat Account.
You can choose whichever way to transfer the funds that suit you well. The only advantage of doing it online is that it takes away any dependency on the broker or any manual effort in the future.
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Check out more such questions related to the Stock market here.
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