As we all know, A Demat account is important to hold the securities ( such as shares, ETFs, Mutual Fund units, and etc. ) in digital form. Many people want to transfer shares from one Demat account to another, But they don’t know too.
In this article, We will know that How to transfer shares from one Demat account to another Demat account? However, If you don’t know the Demat account then Learn about the Demat account.
How to transfer shares from one Demat account to another?
Commonly, People want to transfer their shares because They want to switch their account from one broker to another. However, There can be different reasons also.
In Fact, Transfer shares through a Demat account is just like as transfer money from a bank account. The only difference is that you transfer shares through the Demat account rather than money.
So, If you want to transfer shares from one Demat account to another then It can be done in one of two ways, either by manual transfer or by online transfer. Before we start you should also know the difference between Demat and Trading account.
How to transfer shares from one Demat account to another Online
If you have basic knowledge then you should go online. So, If you have selected the online process for transfer shares from one Demat account to another Demat account, It can be simply done by CDSL.
The account holder is required to go to the CDSL website and obtain themselves registered. Once that’s done, the form or application has to be submitted to the DP. After the DP has completed the verification process, the account owner will then be allowed to form their own future transfers.
After complete above follow these steps to transfer your shares from Demat account to another
- Once got accessed to the CDSL website, the ‘Register Online’ link has to be selected.
- The next step is to fill out the form or application with the necessary details.
- Once the form or application has been filled in, the option to ‘Print Form or Application’ has to be selected. After the form or application has been printed, it will be transferred to the account holder’s DP.
- After the DP has finished the verification process of the form, a password will be given to the account owner’s email id.
- Using the given password, the account holder can log in, and then the account holder can transfer shares from the Demat account to another Demat account.
This is the online method to transfer shares from one Demat account to another Demat account online easily.
How to transfer shares from one Demat account to another Manual/Offline
In the case of the manual transfer of shares from one Demat account to a different one, it’s important to remember certain specifications. Firstly, it’s important to understand that the shares being transferred are secured and held in depository systems.
The mode of transfer of the shares depends on the depository with which your broker is associated. If the account holder’s existing and new brokers are both related to an equivalent depository, there’ll be an intra-depository transfer (or an off-market Transfer) of shares.
If, however, the prevailing and new brokers are related to different depositories, there’ll be an inter-depository transfer of the shares.
When an intra-depository transfer or an off-market transfer is being made, the account owner must use a Debit Instruction Slip or a DIS booklet that’s provided by their Depository Participant (DP).
In case of an intra-depository transfer, these are the steps that require to be followed:-
Step 1 – Write the names of the shares that are to be transferred. Additionally, the ISIN number has got to be recorded also, wherein the ISIN or the International Securities number may be a 12-digit code required to spot securities like funds, equities, bonds, stocks, debts, and more. It is essential to properly enter the ISIN number because the transactions are going to be processed approved.
Step 2 – For the subsequent step, the target client ID has got to be recorded. It is a 16-character code that incorporates the ID of the client and therefore the ID of the DP
Step 3 – this is often a crucial step because it involves the choice of the tactic of the transfer. If the mode of transfer is an intra-depository or an off-market transfer, then the column titled ‘off-market transfer’ has got to be selected. If the mode of transfer is inter-depository, then the ‘inter-depository’ column should be selected. It is important to be cautious when selecting this option.
Once the DIS slip has been filled in, there are a couple of final steps that require to be taken:–
Step 4 – The filled-in and signed DIS slip must be submitted to the account holder’s existing broker.
Step 5 – The acknowledgment receipt for the DIS slip must be collected from the broker.
It will take between 3-5 business days for the prevailing broker to transfer the specified shares from the old Demat account and for the new broker to receive the shares in the new account. The current broker may apply a couple of charges for this procedure, and therefore the rates vary from one broker to a different one.