The Buyt Desk
Holding all your shares in one place in a single Demat account is simpler and helps you access your entire portfolio in one place. It allows one to have a better view of their stocks and have a clearer picture of returns on investment. Investors have a tendency of opening different Demat accounts over a period of time. And gradually it becomes more complex to keep track of multiple accounts. To get a comprehensive picture of investments and the returns on them, an investor should consolidate all his/her shares into one Demat account. Like savings bank accounts, shares can be transferred from one Demat account to another. Merging all of the existing Demat accounts into one functional account is advised by the experts as well. This process does not disturb the ownership hence no tax implications. Even when one switches brokers, transferring shares might be needed.
Process of Transferring shares from one Demat account to another
The shares can be transferred from one Demat account to another in two ways. Based on the depositories you will get two options- manual/offline transfer and online transfer.
Offline/Manual procedure
The Offline procedure to transfer the shares through off-market transfer can happen when shares are held with NSDL or CDSL depositories. You will fill a transfer form i.e Debit Instruction Slip (DIS). with the following details-
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International Securities Identification Number (ISIN) number
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Depository Participant ( DP)
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Name of the company whose share (security) you hold
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Demat account to which the shares are being transferred
For further processing, the DIS form should be submitted to the old broker’s office. Below are the detailed steps to be followed for manual/ offline procedure and filling DIS.
1. Note down the names of the shares that you want to transfer. Along with the 12-digit International Securities Identification Number (ISIN) of funds, equities, bonds, stocks and debts that need to be transferred should be noted.
2. A 16-character code, target client ID which has the ID of the client and the ID of the DP should be recorded.
3. Select the method of transfer ‘off-market transfer’ if the mode of transfer is an intra-depository or an off-market transfer and ‘inter-depository’ if the mode of transfer is inter-depository.
4. Submit the filled-in and signed DIS to the account holder’s existing broker.
5. Collect the acknowledgment receipt from the broker.
The time taken to transfer the required shares from the old Demat account to the new is approximately 3-5 business days. One needs to pay the current broker a few charges for this procedure.
Online procedure
‘EASIEST’ is the platform where the online transfer of shares held with CDSL will happen. One needs to register on this platform and log in to feed in existing Demat account details. Then the addition of the trusted account is done where the shares are to be transferred. Account addition usually takes 24 hours and after this online transferring from the old Demat account to the new one will happen easily. Here are detailed steps to follow for the online transfer of shares.
1. The CDSL website https://web.cdslindia.com/
2. Fill in the form of registration with the required details.
3. After filling in the form print it by selecting the option ‘Print Form’. Now it will be transferred to the account holder’s DP.
4. As the verification process by the DP is completed, the account holder’s email id will receive the password.
5. Use this password to log in and transfer the required shares.
Things to note
The transfer of shares from one Demat account to another will neither cause the change of ownership nor amount to capital gains on transfer. If the old account is not closed, the broker may charge a declared amount as a fee for processing the transfer request.
