How to transfer shares from one Demat account to another: Step-by-step guide
It is very important to have a Demat account to invest money in the stock market. You cannot buy or trade any shares without a Demat account. Trading through a Demat account is just like making transactions through a bank account. The only difference is that you transfer shares through the Demat account instead of money.
The most important thing with Demat is that you can open more than one account and keep your shares or holdings in different Demat accounts. But if you want to transfer all your shares in one account, then you have that option too.
According to Kotak Securities, the method of transferring shares from one Demat account to another is easy, although there can be many reasons behind this. Sometimes running multiple Demat accounts at the same time creates problems in their maintenance. Many people also transfer shares to save the brokerage amount.
How to transfer shares from one Demat account to another
There are two ways you can follow to transfer your shares or holdings from one Demat account to another. For this, you can follow the manual or online method.
For this, you will have to get a Delivery Instruction Slip (DIS) from your broker. In this DIS, necessary information related to the transfer of shares will be given, which you will have to fill and only then the shares will be transferred.
Beneficiary Broker ID – This will be the 16 digit ID of the broker. On this slip, you will have to provide the ID of both the existing and the new broker.
International Securities Identification Number – This is created to identify the individual shares and is to be entered carefully in the slip as the same will be transferred to the ID you have entered.
Mode of transfer – If you want to do intra-depository transfer, then you have to choose off-market. If not, then the inter-depository option has to be selected.
After giving all these details in the slip, you have to put your signature. After this, you have to submit it to the existing broker. The broker will charge you for this transfer. However, the charges may vary.
Central Depository Securities Limited (CDSL) has a feature called EASIEST, through which you can transfer shares from one Demat account to another online. For this, you have to follow the steps given below.
– Login to the CDSL website
– Click on the Register Online Link
– Select the EASIEST option
– Fill the details, take a print out and send to your Depository Participant (DP)
– DP will send it to the Central Depository, who will verify your details
– After 1-2 days, you will get the login credentials on your mail
– You can now see the list of brokers by logging in