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How To Transfer Shares From One Demat Account To Other
Akin to a bank account, a Demat account can easily be used to transfer shares between accounts. Curious about how to transfer shares from one demat account to another? This process does not affect one’s ownership of the securities in any manner. On the other hand, it eliminates the possibility of a transaction. As a consequence, there aren’t tax implications that could arise as a result of a transfer across Demat accounts. Certain situations arise where one may require that shares are transferred from one account to another. Typically, the most common reason for this transferral to be facilitated is to change brokers.
Suppose that the requirements of an account holder from their current brokerage change, this calls for a new broker to open up a fresh Demat account. In this case, it is also necessary for the port Demat account to transfer their shares to a new one. As an individual who is operating a slew of Demat accounts, one can choose to combine all of their existing accounts into one uniform working account. In such cases, the transfer of shares from their older account to their new Demat account is necessary. Now let\’s come to answering the question of how to transfer share from one Demat to another online.
How to transfer shares from one demat to another
• Firstly, ensure you keep a record of the share’s names that are being transferred. The ISIN number — a 12-digit code needed to identify securities such as bonds, stocks, equities, debts, and more — also has to be recorded.
• Record the client’s target ID as well. This has a code of 16 characters that includes the ID of the client and that of the depository participant.
• Select the mode of transfer. If it will be intra-depository, otherwise referred to as an off-market transfer, then the relevant column with the same title needs to be selected. Alternatively, if the transfer mode is inter-depository, the relevant column needs to be selected.
• The signed and completely filled in DIS slip will have to be submitted to the account holder’s current broker.
• Both the acknowledgment and receipt of the DIP slip should be collected from the broker.
• The existing broker will take about three to five days to transfer the shares to the new broker from the older Demat account. While rates vary from one broker to another, the current broker may apply a few charges for this procedure.
How to transfer share from one Demat to another online
1. Once the website for CDSL is accessed, the link to ‘Register Online’ should be selected.
2. The step following this is to fill in the form for the same with one’s required details. The next step is to fill in the form with the required details.
3. Once the form is filled up, the option to Print should be selected. After being printed, the shares will be transferred to the account holder’s depository participant.
4. Once the verification process of the form is completed by the DP, the account holder’s ID will be sent a password.
5. With the password provided, the account holder can log in and then begin to transfer the required shares.